MDT vs JNJ

For growth investors, Johnson & Johnson (JNJ) is the stronger pick with 4.

3% revenue growth year-over-year, versus 3. 6% for Medtronic plc (MDT). Medtronic plc (MDT) offers the better valuation at 21. 5x trailing P/E (14. 1x forward), making it the more compelling value choice. Analysts rate Medtronic plc (MDT) a "Buy" — based on 49 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Medtronic plc (MDT) is the cheapest at 21.

5x versus Johnson & Johnson at 39. 0x. On forward P/E, Medtronic plc is actually cheaper at 14. 1x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Johnson & Johnson wins at 34. 64x versus Medtronic plc's 35. 93x.

Over the past 5 years, Johnson & Johnson (JNJ) delivered a total return of +49.

2%, compared to -28. 0% for Medtronic plc (MDT). Over 10 years, the gap is even starker: JNJ returned +136. 8% versus MDT's +27. 6%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Johnson & Johnson (JNJ) is the lower-risk stock at 0.

06β versus Medtronic plc's 0. 47β — meaning MDT is approximately 717% more volatile than JNJ relative to the S&P 500. On balance sheet safety, Johnson & Johnson (JNJ) carries a lower debt/equity ratio of 51% versus 59% for Medtronic plc — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Johnson & Johnson (JNJ) is pulling ahead at 4.

3% versus 3. 6% for Medtronic plc (MDT). On earnings-per-share growth, the picture is similar: Medtronic plc grew EPS 30. 8% year-over-year, compared to -57. 8% for Johnson & Johnson. Over a 3-year CAGR, JNJ leads at 4. 1% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Johnson & Johnson (JNJ) is the more profitable company, earning 15.

8% net margin versus 13. 9% for Medtronic plc — meaning it keeps 15. 8% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: JNJ leads at 24. 9% versus 17. 8% for MDT. At the gross margin level — before operating expenses — JNJ leads at 69. 1%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Johnson & Johnson (JNJ) is the more undervalued stock at a PEG of 34. 64x versus Medtronic plc's 35. 93x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, Medtronic plc (MDT) trades at 14. 1x forward P/E versus 19. 5x for Johnson & Johnson — 5. 4x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for MDT: 40. 8% to $109. 50.

All stocks in this comparison pay dividends.

Medtronic plc (MDT) offers the highest yield at 3. 6%, versus 2. 2% for Johnson & Johnson (JNJ).

For long-horizon retirement investors, Johnson & Johnson (JNJ) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

06), 2. 2% yield, +136. 8% 10Y return). Both have compounded well over 10 years (JNJ: +136. 8%, MDT: +27. 6%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Healthcare sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: MDT is a mid-cap income-oriented stock; JNJ is a large-cap quality compounder stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.