JNJ vs LULU: Which Is the Better Buy?
Side-by-side comparison of Johnson & Johnson and Lululemon Athletica Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-05-04.
Johnson & Johnson · Healthcare
$230.69
+14.0% upside to fair value
Grade C
High Quality
VS
Lululemon Athletica Inc. · Consumer Cyclical
$128.98
+307.7% upside to fair value
Grade C
QuantHub Verdict
LULU has more upside to fair value
(+307.7%).
LULU trades at a lower forward P/E
(9.7x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
JNJ |
LULU |
| Current Price |
$230.69 |
$128.98 |
| Fair Value Estimate |
$263.05 |
$525.85 |
| Upside to Fair Value |
+14.0%
|
+307.7%
|
| Market Cap |
$555.9B |
$15.1B |
| Forward P/E |
26.8x
|
9.7x
|
| EV / EBITDA |
18.5x
|
5.6x
|
| Price / Sales |
5.8x
|
1.4x
|
| Price / FCF |
28.2x
|
16.4x
|
| Revenue Growth YoY |
+9.9%
|
+0.8%
|
| Gross Margin |
69.1%
|
56.6%
|
| Operating Margin |
26.9%
|
19.8%
|
| Return on Equity |
26.5%
|
34.8%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
3.54%
|
6.09%
|
| Analyst Consensus |
Buy
|
Hold
|
Investment Thesis
Johnson & Johnson is a leading healthcare company focused on pharmaceuticals and medical devices following its consumer health spin-off. The business quality is high due to its durable competitive moat, diversified portfolio, and strong management with deep institutional knowledge. Despite a 52.4% decline in earnings in the most recent quarter, revenue grew 9.9% year-over-year in the same period,…
Lululemon Athletica Inc. is a premium athletic apparel retailer operating primarily in the consumer cyclical sector with a focus on apparel retail. The company has a strong brand and historically high profitability with a gross margin of 56.6% and ROE of 34.8%, but it faces significant near-term challenges including earnings pressure with a 21.6% decline in earnings in the most recent quarter and…
Accumulation Zones
| Metric |
JNJ |
LULU |
| Zone Low |
$197.29 |
$394.39 |
| Zone High |
$223.59 |
$446.97 |
| In Buy Zone? |
No
|
Yes
|