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 2026-09-25.
Johnson & Johnson · Healthcare
$270.68
+5.7% upside to fair value
Med Conviction
Grade C
High Quality
VS
Lululemon Athletica Inc. · Consumer Cyclical
$98.06
+1.5% upside to fair value
Low Conviction
Grade C
QuantHub Verdict
JNJ has more upside to fair value
(+5.7%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
JNJ |
LULU |
| Current Price |
$270.68 |
$98.06 |
| Fair Value Estimate |
$286.05 |
$99.50 |
| Upside to Fair Value |
+5.7%
|
+1.5%
|
| Market Cap |
$652.3B |
$11.1B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
20.2x
|
4.6x
|
| Price / Sales |
6.7x
|
1.0x
|
| Price / FCF |
35.3x
|
8.2x
|
| Revenue Growth YoY |
+6.6%
|
-4.3%
|
| Gross Margin |
67.9%
|
56.1%
|
| Operating Margin |
26.8%
|
17.8%
|
| Return on Equity |
25.7%
|
29.7%
|
| Dividend Yield |
1.95% |
0% |
| FCF Yield |
2.83%
|
12.24%
|
| Analyst Consensus |
Buy
|
Sell
|
Investment Thesis
Johnson & Johnson is a 141,700-employee healthcare holding company operating two segments, Innovative Medicine (immunology, oncology, neuroscience, infectious disease, cardiovascular and metabolism, pulmonary hypertension) and MedTech (interventional solutions, orthopaedics, surgery, vision), founded in 1887 and headquartered in New Brunswick, New Jersey. Business quality is high on fundamentals:…
Lululemon Athletica designs and retails premium athletic apparel and accessories through company-owned stores and direct-to-consumer channels, with roughly 39,000 employees and a brand built on technical fabrics and community-led fitness positioning. The business still earns high returns on equity of 29.7% and generates $12.00 of free cash flow per share on $97.70 of revenue per share, with TTM g…
Accumulation Zones
| Metric |
JNJ |
LULU |
| Zone Low |
$214.54 |
$74.62 |
| Zone High |
$243.14 |
$84.58 |
| In Buy Zone? |
No
|
No
|