Johnson & Johnson (JNJ) vs Northrop Grumman Corporation (NOC) Stock Comparison

Compare Stocks › JNJ vs NOC

JNJ

Johnson & Johnson

$237.60

NOC

Northrop Grumman Corporation

$714.15

Rewards

JNJ

★Johnson & Johnson has maintained ROIC above 10% for 4 consecutive years, suggesting solid business economics.
★Gross margin of 68.1% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
★Johnson & Johnson scores 90/100 on the Economic Moat Score (Wide Moat), with revenue predictability as the strongest competitive dimension.

NOC

★Free cash flow has grown at a 31.1% CAGR over the past 4 years, demonstrating strong earnings power growth.

Risks

JNJ

⚠FCF yield of 2.9% is below 3%, meaning the market is pricing in substantial future growth to justify the current price.
⚠7 insider sales totaling $58.4M with no purchases in the past 3 months — insiders are reducing their exposure.

NOC

⚠Gross margin of 19.8% is low, suggesting a competitive or commodity-like market with limited pricing power.
⚠FCF yield of 2.8% is below 3%, meaning the market is pricing in substantial future growth to justify the current price.
⚠13 insider sales totaling $26.2M with no purchases in the past 3 months — insiders are reducing their exposure.

Key Valuation Metrics

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JNJ

NOC

Valuation

$16.63B

Free Cash Flow

$2.90B

2.90%

FCF Yield

2.85%

21.56

Trailing P/E

24.57

18.90

Forward P/E

23.78

Quality & Moat

13.63%

ROIC

15.85%

32.87%

ROE

25.08%

68.08%

Gross Margin

19.82%

0.44

PEG Ratio

1.62

Balance Sheet Safety

0.60

Debt / Equity

1.07

N/A

Interest Coverage

N/A

0.86

Net Debt / EBITDA

1.98

2.19%

Dividend Yield

1.29%

JNJ: 9Ties: 2NOC: 1

JNJNOC

Historical Fundamentals

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JNJ

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation.

NOC

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation.

$1 Retained Earnings Test

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JNJ

$0.91

created per $1 retained over 3 years

Mediocre Allocator

Σ Retained

$40.05B

Δ Market Cap

+$36.63B

Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer

NOC

$-0.38

created per $1 retained over 3 years

Market Cap Declined

Σ Retained

$6.82B

Δ Market Cap

$-2.60B

Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer

Discounted Cash Flow (DCF) Analysis

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JNJ

2.9% Margin of Safety

Price is 2.9% below estimated fair value

Current Price: $237.60

Strongly undervalued

Undervalued

Fairly valued

Overvalued

Strongly overvalued

Fair Value: $244.77

Strongly undervalued

Undervalued

Fairly valued

Overvalued

Strongly overvalued

NOC

28.5% Overvalued

Price is 28.5% above estimated fair value

Current Price: $714.15

Strongly undervalued

Undervalued

Fairly valued

Overvalued

Strongly overvalued

Fair Value: $555.65

Strongly undervalued

Undervalued

Fairly valued

Overvalued

Strongly overvalued

Reverse DCF — Market-Implied Growth

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JNJ

What growth rate is the market pricing in at $238?

+9.3%

Market-Implied Owner Earnings Growth

Standard FCF implies +15.8%

The market implies +9.3% Owner Earnings growth, below historical trends — potential opportunity.

Standard FCF implies a more demanding +15.8%, reflecting heavy growth investment expected to generate future returns.

NOC

What growth rate is the market pricing in at $714?

+12.1%

Market-Implied Owner Earnings Growth

Standard FCF implies +17.1%

The market implies +12.1% Owner Earnings growth, above historical trends.

Standard FCF implies a demanding +17.1%, reflecting heavy growth investment.

Economic Moat Score

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JNJ

90/100

Wide Moat

70+ Wide · 40-69 Narrow · <40 None

Wide moat with strength across all dimensions. Revenue Predictability is the standout factor.

Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 5 years of fundamental data.

NOC

68/100

Narrow Moat

70+ Wide · 40-69 Narrow · <40 None

Narrow moat with revenue predictability as the key competitive advantage. Improving margin stability would strengthen the moat.

Forensic Accounting

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JNJ

-2.31

Unlikely Manipulator

Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

M-Score Trend

Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.

NOC

-2.45

Unlikely Manipulator

Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

M-Score Trend

Ownership Breakdown

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JNJ

Insiders 0.1%Institutions 75.8%Retail & Other 24.2%

No. of Institutional Holders5,544

High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.

NOC

Insiders 0.2%Institutions 83.5%Retail & Other 16.3%

No. of Institutional Holders2,192

High insider ownership aligns management incentives with shareholders. Institutional concentration can indicate smart-money conviction but also crowding risk.

Insider Buying Activity

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JNJ

Buys (3M)

Buys (12M)

Total value (12M): $257,688

MORIKIS JOHN G

Director

$257,688

@ $206.15 · 2025-11-26

WEINBERGER MARK A

Director

$147,220

@ $147.22 · 2024-12-12

WOODS EUGENE A

Director

$14,553

@ $145.53 · 2024-04-30

Open market purchases · includes direct & indirect ownership · excludes option exercises

NOC

Buys (3M)

Buys (12M)

No open market insider purchases found.

Open market purchases · includes direct & indirect ownership · excludes option exercises

Open market purchases · includes direct & indirect ownership · excludes option exercises.

Insider Selling Activity

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JNJ

Sells (3M)

Sells (12M)

Total value (12M): $101.23M

DECKER ROBERT J

Officer

$1.01M

@ $247.87 · 2026-02-27

SCHMID TIMOTHY

Officer

$324,763

@ $245.66 · 2026-02-20

SCHMID TIMOTHY

Officer

$5.53M

@ $244.33 · 2026-02-18

WOLK JOSEPH J

Chief Financial Officer

$21.77M

@ $242.80 · 2026-02-17

SWANSON JAMES D

Chief Technology Officer

$15.11M

@ $243.39 · 2026-02-17

BROADHURST VANESSA

Officer

$1.51M

@ $243.39 · 2026-02-17

REED JOHN C

Officer

$13.11M

@ $243.00 · 2026-02-17

REED JOHN C

Officer

$4.19M

@ $192.71 · 2025-10-17

TAUBERT JENNIFER L

Officer

$10.04M

@ $177.81 · 2025-09-04

DUATO JOAQUIN BOIX

Chief Executive Officer

$22.55M

@ $179.21 · 2025-08-22

WOLK JOSEPH J

Chief Financial Officer

$2.98M

@ $176.91 · 2025-08-15

REED JOHN C

Officer

$3.13M

@ $163.55 · 2025-07-17

DECKER ROBERT J

Officer

$1.16M

@ $165.88 · 2025-02-25

SCHMID TIMOTHY

Officer

$62,928

@ $156.15 · 2025-02-18

WOLK JOSEPH J

Chief Financial Officer

$2.00M

@ $153.89 · 2025-02-07

DECKER ROBERT J

Officer

$930,113

@ $165.06 · 2024-08-30

Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives

NOC

Sells (3M)

Sells (12M)

Total value (12M): $35.39M

SIMPSON KATHRYN G.

General Counsel

$650,385

@ $745.00 · 2026-03-02

ROEDER ROSHAN S.

Officer

$1.26M

@ $720.00 · 2026-02-27

HARDESTY MICHAEL A

Officer

$107,748

@ $732.98 · 2026-02-19

ROEDER ROSHAN S.

Officer

$372,541

@ $727.62 · 2026-02-19

SIMPSON KATHRYN G.

General Counsel

$141,158

@ $727.62 · 2026-02-19

DAVIES BENJAMIN R

Officer

$1.58M

@ $719.62 · 2026-02-18

HARDESTY MICHAEL A

Officer

$501,609

@ $701.55 · 2026-02-17

ROEDER ROSHAN S.

Officer

$223,414

@ $702.56 · 2026-02-17

SIMPSON KATHRYN G.

General Counsel

$547,294

@ $702.56 · 2026-02-17

HARDESTY MICHAEL A

Officer

$550,411

@ $702.95 · 2026-02-13

WARDEN KATHY J

Chief Executive Officer

$14.18M

@ $708.82 · 2026-02-06

WELSH MARK A. III

Director

$65,029

@ $684.52 · 2026-02-02

WARDEN KATHY J

Chief Executive Officer

$6.04M

@ $604.50 · 2026-01-06

ROEDER ROSHAN S.

Officer

$46,649

@ $555.35 · 2025-12-09

WELSH MARK A. III

Director

$54,716

@ $564.08 · 2025-11-24

JONES THOMAS H.

Officer

$382,725

@ $525.00 · 2025-07-17

WELSH MARK A. III

Director

$16,720

@ $506.67 · 2025-07-07

JONES THOMAS H.

Officer

$368,706

@ $505.77 · 2025-06-13

FLEMING ROBERT J

Officer

$1.77M

@ $505.77 · 2025-06-13

WARDEN KATHY J

Chief Executive Officer

$5.65M

@ $502.18 · 2025-06-13

WELSH MARK A. III

Director

$16,120

@ $488.48 · 2025-06-05

ROEDER ROSHAN S.

Officer

$485,590

@ $490.00 · 2025-06-04

JONES THOMAS H.

Officer

$349,920

@ $480.00 · 2025-05-30

WELSH MARK A. III

Director

$16,293

@ $493.73 · 2025-05-05

WELSH MARK A. III

Director

$15,850

@ $480.30 · 2025-04-07

WARDEN KATHY J

Chief Executive Officer

$1.78M

@ $475.65 · 2025-03-06

WELSH MARK A. III

Director

$15,631

@ $473.67 · 2025-03-05

DAVIES BENJAMIN R

Officer

$213,788

@ $460.75 · 2025-02-28

HARDESTY MICHAEL A

Officer

$875,873

@ $453.59 · 2025-02-24

SIMPSON KATHRYN G.

General Counsel

$444,098

@ $429.08 · 2025-02-20

DAVIES BENJAMIN R

Officer

$82,383

@ $429.08 · 2025-02-20

SIMPSON KATHRYN G.

General Counsel

$395,916

@ $445.35 · 2025-02-18

DAVIES BENJAMIN R

Officer

$130,488

@ $445.35 · 2025-02-18

WELSH MARK A. III

Director

$15,843

@ $480.09 · 2025-02-05

WELSH MARK A. III

Director

$15,072

@ $456.73 · 2025-01-06

WELSH MARK A. III

Director

$15,886

@ $481.39 · 2024-12-05

DAVIES BENJAMIN R

Officer

$616,067

@ $532.93 · 2024-11-11

WELSH MARK A. III

Director

$16,833

@ $510.09 · 2024-11-05

WELSH MARK A. III

Director

$17,675

@ $535.61 · 2024-10-07

WELSH MARK A. III

Director

$17,151

@ $519.73 · 2024-09-05

WELSH MARK A. III

Director

$17,546

@ $516.06 · 2024-08-29

JONES THOMAS H.

Officer

$695,000

@ $500.00 · 2024-08-02

JONES THOMAS H.

Officer

$1.30M

@ $469.25 · 2024-07-26

ROEDER ROSHAN S.

Officer

$429,429

@ $471.90 · 2024-05-20

Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives

Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives.

🎭 Mr. Market's Mood

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JNJ

😐Neutral(59/100)

"Market is pricing this stock without strong emotion in either direction"

Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.

NOC

😏Greed(61/100)

"Market is optimistic — be cautious and ensure you have a margin of safety"

Composite sentiment score based on market signals. Inspired by Buffett’s "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.

⚖️ Buffett Signal

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JNJ

⚪Awaiting DCF Data

The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

DCF Margin of Safety: N/AMr. Market's Mood: Neutral (59)

NOC

⚪Awaiting DCF Data

The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

DCF Margin of Safety: N/AMr. Market's Mood: Greed (61)

View JNJ Full Analysis View NOC Full Analysis