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 2026-07-17.
Johnson & Johnson · Healthcare
$253.85
-21.7% upside to fair value
Grade D
High Quality
VS
Lululemon Athletica Inc. · Consumer Cyclical
$116.33
+45.0% upside to fair value
Med Conviction
Grade B-
QuantHub Verdict
LULU has more upside to fair value
(+45.0%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
JNJ |
LULU |
| Current Price |
$253.85 |
$116.33 |
| Fair Value Estimate |
$198.76 |
$168.68 |
| Upside to Fair Value |
-21.7%
|
+45.0%
|
| Market Cap |
$611.1B |
$13.2B |
| Forward P/E |
29.3x
|
—
|
| EV / EBITDA |
19.2x
|
5.3x
|
| Price / Sales |
6.3x
|
1.2x
|
| Price / FCF |
34.3x
|
10.3x
|
| Revenue Growth YoY |
+9.9%
|
+4.3%
|
| Gross Margin |
69.1%
|
55.7%
|
| Operating Margin |
26.9%
|
18.2%
|
| Return on Equity |
26.3%
|
31.3%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
2.91%
|
9.69%
|
| Analyst Consensus |
Buy
|
Hold
|
Investment Thesis
Johnson & Johnson is a leading healthcare conglomerate operating primarily in the drug manufacturing sector, known for its durable competitive moat supported by strong brand recognition and intangible assets. The company exhibits high business quality with a 26.3% return on equity and robust gross and net margins of 69.1% and 21.8%, respectively. However, earnings have faced significant pressure,…
Lululemon Athletica is a premium athletic-apparel retailer whose technical-product innovation, powerful brand, direct-to-consumer retail and e-commerce model, and community-led marketing have historically supported high returns, including a 31.3% ROE, 55.7% gross margin, 18.2% operating margin, and 13.0% net margin. The investment case is now a turnaround rather than a clean compounding story: in…
Accumulation Zones
| Metric |
JNJ |
LULU |
| Zone Low |
$149.07 |
$126.51 |
| Zone High |
$168.95 |
$143.38 |
| In Buy Zone? |
No
|
Yes
|