JNJ vs PYPL: Which Is the Better Buy?
Side-by-side comparison of Johnson & Johnson and PayPal Holdings, Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-05-05.
Johnson & Johnson · Healthcare
$230.69
+14.0% upside to fair value
Grade C
High Quality
VS
PayPal Holdings, Inc. · Financial Services
$50.39
+110.0% upside to fair value
Grade B
QuantHub Verdict
PYPL has more upside to fair value
(+110.0%).
PYPL trades at a lower forward P/E
(9.0x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
JNJ |
PYPL |
| Current Price |
$230.69 |
$50.39 |
| Fair Value Estimate |
$263.05 |
$105.84 |
| Upside to Fair Value |
+14.0%
|
+110.0%
|
| Market Cap |
$555.9B |
$45.3B |
| Forward P/E |
26.8x
|
9.0x
|
| EV / EBITDA |
18.5x
|
6.1x
|
| Price / Sales |
5.8x
|
1.4x
|
| Price / FCF |
28.2x
|
8.2x
|
| Revenue Growth YoY |
+9.9%
|
+3.7%
|
| Gross Margin |
69.1%
|
46.6%
|
| Operating Margin |
26.9%
|
18.3%
|
| Return on Equity |
26.5%
|
25.9%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
3.54%
|
12.27%
|
| Analyst Consensus |
Buy
|
Sell
|
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,…
PayPal Holdings, Inc. operates as a leading digital payments platform offering transaction processing and value-added financial services such as consumer credit and BNPL products. The business quality is medium due to a narrowing competitive moat amid increasing pressure from big tech competitors and slowing growth in its core branded checkout segment. The stock is currently mispriced and cheap, …
Accumulation Zones
| Metric |
JNJ |
PYPL |
| Zone Low |
$197.29 |
$79.38 |
| Zone High |
$223.59 |
$89.96 |
| In Buy Zone? |
No
|
Yes
|