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 2026-07-15.
Johnson & Johnson · Healthcare
$253.85
-21.7% upside to fair value
Grade D
High Quality
VS
PayPal Holdings, Inc. · Financial Services
$42.51
+45.0% upside to fair value
Grade B
QuantHub Verdict
PYPL has more upside to fair value
(+45.0%).
PYPL trades at a lower forward P/E
(7.7x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
JNJ |
PYPL |
| Current Price |
$253.85 |
$42.51 |
| Fair Value Estimate |
$198.76 |
$61.64 |
| Upside to Fair Value |
-21.7%
|
+45.0%
|
| Market Cap |
$611.1B |
$37.5B |
| Forward P/E |
29.3x
|
7.7x
|
| EV / EBITDA |
19.2x
|
5.3x
|
| Price / Sales |
6.3x
|
1.1x
|
| Price / FCF |
34.3x
|
6.8x
|
| Revenue Growth YoY |
+9.9%
|
+7.2%
|
| Gross Margin |
69.1%
|
46.1%
|
| Operating Margin |
26.9%
|
17.9%
|
| Return on Equity |
26.3%
|
25.1%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
2.91%
|
14.71%
|
| Analyst Consensus |
Buy
|
Sell
|
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,…
PayPal Holdings, Inc. operates as a leading global digital payments platform with a competitive moat driven by its extensive network effects, brand recognition, and scale. Despite a durable business model with 2025 revenue of $33.17 billion growing at 4.3% year-over-year and a strong return on equity of 25.1%, the company faces slowing growth and margin pressures, reflected in a 13.5% decline in …
Accumulation Zones
| Metric |
JNJ |
PYPL |
| Zone Low |
$149.07 |
$46.23 |
| Zone High |
$168.95 |
$52.39 |
| In Buy Zone? |
No
|
Yes
|