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 2026-04-11.
Johnson & Johnson · Healthcare
$238.46
-11.8% upside to fair value
Med Conviction
Grade C+
VS
Starbucks Corporation · Consumer Cyclical
$96.60
+19.0% upside to fair value
Med Conviction
Grade B+
QuantHub Verdict
SBUX has more upside to fair value
(+19.0%).
JNJ trades at a lower forward P/E
(20.2x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
JNJ |
SBUX |
| Current Price |
$238.46 |
$96.60 |
| Fair Value Estimate |
$210.28 |
$115.00 |
| Upside to Fair Value |
-11.8%
|
+19.0%
|
| Market Cap |
$574.7B |
$110.1B |
| Forward P/E |
20.2x
|
42.2x
|
| EV / EBITDA |
13.3x
|
22.5x
|
| Price / Sales |
6.2x
|
3.0x
|
| Price / FCF |
29.4x
|
45.1x
|
| Revenue Growth YoY |
+6.1%
|
+2.8%
|
| Gross Margin |
72.8%
|
24.2%
|
| Operating Margin |
27.2%
|
9.6%
|
| Return on Equity |
32.87%
|
-22.9%
|
| Dividend Yield |
2.18% |
2.55% |
| FCF Yield |
3.4%
|
2.2%
|
| Analyst Consensus |
Moderate Buy
|
Hold
|
Investment Thesis
Johnson & Johnson is a high-quality healthcare conglomerate focused exclusively on Innovative Medicine and MedTech following the Kenvue spin-off. The company delivered $94.2B in FY2025 revenue with 6% operational growth, generated $19.7B in free cash flow, and guided for $99.5-100.5B in 2026 operational sales (above consensus). However, at $238 the stock trades at a P/S of 6.15x, well above the 5…
Starbucks is the world's largest specialty coffee retailer with over 39,000 stores across 86 markets, generating $37.2B in annual revenue. Under CEO Brian Niccol, now 19 months into his tenure after joining from Chipotle in September 2024, the company is executing the Back to Starbucks operational turnaround focused on service speed, menu simplification, and store experience reinvention. At P/S 2…
Accumulation Zones
| Metric |
JNJ |
SBUX |
| Zone Low |
$157.71 |
$88.00 |
| Zone High |
$178.74 |
$98.00 |
| In Buy Zone? |
No
|
Yes
|