JNJ vs SBUX: Which Is the Better Buy?
Side-by-side comparison of Johnson & Johnson and Starbucks Corporation — 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
Starbucks Corporation · Consumer Cyclical
$100.65
-6.1% upside to fair value
Grade D
QuantHub Verdict
SBUX has more upside to fair value
(-6.1%).
JNJ trades at a lower forward P/E
(29.3x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
JNJ |
SBUX |
| Current Price |
$253.85 |
$100.65 |
| Fair Value Estimate |
$198.76 |
$94.50 |
| Upside to Fair Value |
-21.7%
|
-6.1%
|
| Market Cap |
$611.1B |
$114.7B |
| Forward P/E |
29.3x
|
76.7x
|
| EV / EBITDA |
19.2x
|
25.6x
|
| Price / Sales |
6.3x
|
3.0x
|
| Price / FCF |
34.3x
|
42.1x
|
| Revenue Growth YoY |
+9.9%
|
+8.8%
|
| Gross Margin |
69.1%
|
20.4%
|
| Operating Margin |
26.9%
|
9.3%
|
| Return on Equity |
26.3%
|
-18.3%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
2.91%
|
2.38%
|
| 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,…
Starbucks Corporation operates a global coffeehouse chain with a strong brand and a leading digital/mobile platform, serving approximately 90 million customers weekly through over 28,000 stores in 77 countries. The company benefits from a durable competitive moat based on its extensive store footprint, brand recognition, and digital engagement rather than proprietary products. Despite solid reven…
Accumulation Zones
| Metric |
JNJ |
SBUX |
| Zone Low |
$149.07 |
$70.88 |
| Zone High |
$168.95 |
$80.33 |
| In Buy Zone? |
No
|
No
|