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Johnson & Johnson (JNJ) vs Regeneron Pharmaceuticals, Inc. (REGN): Which Is the Better Buy in 2026?

As of 2026-06-19, JNJ is fairly valued at $228, with a DCF intrinsic value of $281 and a margin of safety of 19%. REGN is undervalued at $610, with an intrinsic value of $1572 and a margin of safety of 61%. Of the two, REGN has the wider margin of safety.

JNJ
Johnson & Johnson
$228.39
VS
REGN
Regeneron Pharmaceuticals, Inc.
$609.94

Rewards

JNJ
  • ★Johnson & Johnson has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
  • ★Gross margin of 68.0% 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.
REGN
  • ★Regeneron Pharmaceuticals, Inc. scores 80/100 on the Economic Moat Score (Wide Moat), with revenue predictability as the strongest competitive dimension.
  • ★Trailing P/E of 14.9x is 22% below the historical average of 19.2x — potentially undervalued relative to its own history.
  • ★Altman Z-Score of 7.56 indicates very low bankruptcy risk — the company is firmly in the safe zone.

Risks

JNJ
  • ⚠Trailing P/E of 26.5x is 33% above the historical average of 20.0x — the stock trades at a premium to its own history.
  • ⚠PEG ratio of 3.06 indicates the stock is expensive relative to its expected growth — the market may be pricing in more growth than analysts project.
  • ⚠Insiders have sold $2.4M worth of stock in the past 3 months — significant insider liquidation.
REGN
  • ⚠ROIC has declined by 7.3 percentage points over the past 4 years, which may signal competitive erosion.
  • ⚠Each dollar of retained earnings has produced only $0.15 of earning power — shareholders may have been better served by dividends.
  • ⚠FCF yield of 5.1% suggests reasonable valuation assuming continued moderate growth.

Key Valuation Metrics

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JNJ
REGN
Valuation
$19.31B
Free Cash Flow
$3.27B
3.51%
FCF Yield
5.12%
26.46
Trailing P/E
14.90
17.96
Forward P/E
11.34
Quality & Moat
15.32%
ROIC
7.13%
26.42%
ROE
14.55%
68.04%
Gross Margin
43.89%
3.06
PEG Ratio
1.07
Balance Sheet Safety
0.41
Net Debt / Equity
Net cash
N/A
Interest Coverage
N/A
0.96
Net Debt / EBITDA
-1.38
2.22%
Dividend Yield
0.61%
JNJ: 5Ties: 1REGN: 6
JNJREGN

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. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.

REGN

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.

$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
REGN
$0.20
created per $1 retained over 3 years
Value Destroyer
Σ Retained
$12.50B
Δ Market Cap
+$2.52B
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

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
18.6% Margin of Safety
Price is 18.6% below estimated fair value
Current Price: $228.39
Fair Value: $280.51
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
REGN
61.2% Margin of Safety
Price is 61.2% below estimated fair value
Current Price: $609.94
Fair Value: $1572.11
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 $228?

+7.7%
Market-Implied Owner Earnings Growth
Standard FCF implies +13.3%

The market implies +7.7% Owner Earnings growth, above historical trends.

Standard FCF implies a demanding +13.3%, reflecting heavy growth investment.

REGN

What growth rate is the market pricing in at $610?

+1.6%
Market-Implied Owner Earnings Growth
Standard FCF implies +6.0%

The market implies +1.6% Owner Earnings growth, roughly in line with history — reasonably priced.

Standard FCF implies +6.0%, reflecting ongoing 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.
REGN
80/100
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.

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.
REGN
-2.51
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.

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.

Ownership Breakdown

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JNJ
Insiders 0.1%Institutions 76.9%Retail & Other 23.1%
No. of Institutional Holders5,728
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.
REGN
Insiders 2.0%Institutions 92.3%Retail & Other 5.6%
No. of Institutional Holders1,990
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.

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
0
Buys (3M)
1
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
Open market purchases · includes direct & indirect ownership · excludes option exercises
REGN
0
Buys (3M)
0
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
1
Sells (3M)
13
Sells (12M)
Total value (12M): $103.65M
WENGEL KATHRYN E
Chief Technology Officer
$2.41M
@ $241.15 · 2026-06-11
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
SWANSON JAMES D
Chief Technology Officer
$15.11M
@ $243.39 · 2026-02-17
BROADHURST VANESSA
Officer
$1.51M
@ $243.39 · 2026-02-17
WOLK JOSEPH J
Chief Financial Officer
$21.77M
@ $242.80 · 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
REGN
2
Sells (3M)
10
Sells (12M)
Total value (12M): $9.47M
RYAN ARTHUR F
Director
$70,524
@ $705.24 · 2026-05-01
RYAN ARTHUR F
Director
$77,727
@ $777.27 · 2026-04-01
RYAN ARTHUR F
Director
$78,550
@ $785.50 · 2026-03-02
ZOGHBI HUDA Y
Director
$1.28M
@ $781.33 · 2026-02-19
RYAN ARTHUR F
Director
$77,853
@ $778.53 · 2026-02-09
PITOFSKY JASON
Officer
$1.59M
@ $778.52 · 2026-02-09
BASSLER BONNIE L
Director
$1.20M
@ $800.00 · 2026-01-07
BASSLER BONNIE L
Director
$570,000
@ $750.00 · 2025-11-20
PITOFSKY JASON
Officer
$280,766
@ $651.43 · 2025-11-07
POON CHRISTINE A
Director
$4.25M
@ $654.27 · 2025-10-29
MCCOURT MARION E
Officer
$844,610
@ $844.61 · 2024-11-01
RYAN ARTHUR F
Director
$104,878
@ $1048.78 · 2024-10-01
MCCOURT MARION E
Officer
$1.05M
@ $1054.06 · 2024-10-01
RYAN ARTHUR F
Director
$117,868
@ $1178.68 · 2024-09-03
MCCOURT MARION E
Officer
$1.18M
@ $1178.73 · 2024-09-03
POON CHRISTINE A
Director
$12.55M
@ $1158.17 · 2024-08-15
BASSLER BONNIE L
Director
$884,520
@ $1170.00 · 2024-08-15
MURPHY ANDREW J
Officer
$7.34M
@ $1153.15 · 2024-08-14
STAHL NEIL E
Officer
$5.64M
@ $1084.54 · 2024-08-08
PITOFSKY JASON
Officer
$521,090
@ $1070.00 · 2024-08-07
BASSLER BONNIE L
Director
$842,940
@ $1115.00 · 2024-08-02
RYAN ARTHUR F
Director
$107,467
@ $1085.53 · 2024-08-01
RYAN ARTHUR F
Director
$1,100
@ $1100.00 · 2024-08-01
MCCOURT MARION E
Officer
$1.21M
@ $1060.86 · 2024-08-01
LAROSA JOSEPH J
General Counsel
$2.03M
@ $1088.95 · 2024-07-11
RYAN ARTHUR F
Director
$105,924
@ $1059.24 · 2024-07-01
MCCOURT MARION E
Officer
$1.19M
@ $1047.11 · 2024-07-01
BASSLER BONNIE L
Director
$802,872
@ $1062.00 · 2024-06-24
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
FearGreed
😏Greed(62/100)

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

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.
REGN
FearGreed
😐Neutral(43/100)

"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.

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: Greed (62)
REGN
⚪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 (43)
View JNJ Full AnalysisView REGN Full Analysis

Frequently Asked Questions: JNJ vs REGN

Is Johnson & Johnson or Regeneron Pharmaceuticals, Inc. more undervalued in 2026?▼

Based on our discounted cash flow model, REGN trades at a 61.2% margin of safety (intrinsic value $1572 vs. price $610), compared to JNJ's 18.6% margin of safety (intrinsic $281 vs. $228).

Which stock has a wider economic moat, Johnson & Johnson or Regeneron Pharmaceuticals, Inc.?▼

JNJ scores 90/100 (Wide moat), while REGN scores 80/100 (Wide moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.

Which company has better free cash flow, Johnson & Johnson or Regeneron Pharmaceuticals, Inc.?▼

Regeneron Pharmaceuticals, Inc. (REGN) generates a 5.1% free cash flow yield, compared to Johnson & Johnson's 3.5%. A higher FCF yield means the business converts more of its market value into cash that can be returned to shareholders or reinvested.

Which stock has higher return on invested capital, Johnson & Johnson or Regeneron Pharmaceuticals, Inc.?▼

JNJ earns 15.3% ROIC versus REGN's 7.1%. A higher ROIC means the company generates more profit per dollar of capital employed, a hallmark of durable competitive advantage in Buffett-style analysis.

Which dividend is safer, Johnson & Johnson's or Regeneron Pharmaceuticals, Inc.'s?▼

REGN's dividend earns a safety score of 85/100 (Very Safe), compared to JNJ's 79/100 (Safe). REGN has raised its dividend for 0 consecutive years.