Johnson & Johnson vs Merck & Company: Fair Value & Quality
Both stocks run through our valuation models. Here is how Johnson & Johnson (JNJ) and Merck & Company (MRK) compare, as of Aug 13, 2026.
As of Aug 13, 2026, Fair Value Calculator sees Merck & Company as the less overvalued of the two: Johnson & Johnson trades at $261 versus a fair value of $169 (-35%), while Merck & Company trades at $133 versus $125 (-6%).
Johnson & Johnson
JNJ · USD · Health Care
-35%
upside to fair value
overvalued
Price$261
Fair Value$169
Quality81/100
Merck & Company
MRK · USD · Health Care
-6%
upside to fair value
fairly valued
Price$133
Fair Value$125
Quality70/100
Head-to-head numbers
Green value = the better side for that row (for valuation multiples: lower = cheaper).
Johnson & JohnsonMerck & Company
Valuation
29.4×P/E (TTM)38.5×
6.34×P/S (TTM)4.64×
7.49×P/B5.80×
18.4×EV/EBITDA11.4×
4.95×PEG6.10×
2.0%Dividend yield2.6%
$5.20Dividend per share$3.28
Profitability
22%Net margin14%
27%Operating margin39%
26%Return on equity19%
8%Return on assets13%
Growth
10%Revenue growth (YoY)5%
5.6%Avg. growth/yr (3Y)3.1%
2.7%Avg. growth/yr (5Y)9.4%
Balance & size
0.48×Debt / equity0.89×
$611BMarket cap$305B
healthyGrowth qualityhealthy
Even match: 7 to 7 metric wins.
Dash = not meaningfully computable, for example with negative equity.
Quality in detail
The quality score, broken down into the same factor families as on the stock page, 0 to 100 per family.
Johnson & Johnsonof which business quality 76 · market factors 85Merck & Companyof which business quality 68 · market factors 85
ProfitabilityMargins and returns on capital today
74
74
Quality GrowthAre margins and returns improving?
73
36
CashflowEarnings quality: real cash, not paper profit
InvestmentDisciplined investing over empire-building
87
71
Low VolatilityCalm price path (market factor)
96
86
MomentumPrice trend over the last 3–12 months (market factor)
72
75
52W MomentumDistance to the 52-week high (market factor)
94
100
Net IssuanceBuybacks instead of dilution
90
91
What the models say
The median fair value (base case) per model family, each in the currency of its trading venue. Green = above the current price, red = below.
Johnson & Johnson
DCF Models$171
Earnings-Based$73.34
Dividend Discount$93.41
Multiples$163
Asset-Based$22.70
Growth DCF$129
Economic Profit$102
Growth Earnings$207
26 of 26 models see the stock below the current price.
Merck & Company
DCF Models$117
Earnings-Based$62.77
Dividend Discount$60.35
Multiples$122
Asset-Based$14.27
Growth DCF$74.00
Economic Profit$83.85
Growth Earnings$138
19 of 26 models see the stock below the current price.
Scenario ranges
From our cautious bear case to the optimistic bull case. The white tick is the current price: left of fair value means room to run.
Johnson & Johnson
Bear $106Fair Value $169Bull $255
$261 = current price (white tick)
Merck & Company
Bear $70.92Fair Value $125Bull $188
$133 = current price (white tick)
Compare two other stocks
Tap a field and type again, ticker or company name.
Free, no sign-up
Ranked within their sector
Where each stock sits within its sector peer group. Band = middle 50% of peers, tick = median, dot = this stock.
Johnson & Johnson · Health Care
Quality score81 · Top 25%
Fair value upside-35% · below median
Merck & Company · Health Care
Quality score70 · Top 25%
Fair value upside-6% · above median
Bottom line
As of Aug 13, 2026, Fair Value Calculator sees Merck & Company as the less overvalued of the two: Johnson & Johnson trades at $261 versus a fair value of $169 (-35%), while Merck & Company trades at $133 versus $125 (-6%).
Johnson & Johnson has the higher quality score (81/100).
Just your email for the monthly Top-25 report of the most undervalued quality stocks, with fair value, quality and price target. Plus 14 days of Pro to try, no card.
Free. You confirm by email (double opt-in) and can unsubscribe anytime in one click. Not financial advice.
A model-based valuation snapshot from 21 models. Values change with price and fundamentals; the date shown above applies.
