JNJ vs SBUX: Which Is the Better Buy?
Side-by-side comparison of Johnson & Johnson and Starbucks Corporation โ fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-09-25.
Johnson & Johnson ยท Healthcare
$270.68
+5.7% upside to fair value
Med Conviction
Grade C
High Quality
VS
Starbucks Corporation ยท Consumer Cyclical
$96.67
+12.3% upside to fair value
Med Conviction
Grade C
QuantHub Verdict
SBUX has more upside to fair value
(+12.3%).
These are model outputs โ not personalized investment advice.
See all research โ
Valuation & Fundamentals
| Metric |
JNJ |
SBUX |
| Current Price |
$270.68 |
$96.67 |
| Fair Value Estimate |
$286.05 |
$108.52 |
| Upside to Fair Value |
+5.7%
|
+12.3%
|
| Market Cap |
$652.3B |
$110.2B |
| Forward P/E |
โ
|
โ
|
| EV / EBITDA |
20.2x
|
22.0x
|
| Price / Sales |
6.7x
|
2.9x
|
| Price / FCF |
35.3x
|
30.4x
|
| Revenue Growth YoY |
+6.6%
|
-1.4%
|
| Gross Margin |
67.9%
|
31.7%
|
| Operating Margin |
26.8%
|
9.4%
|
| Return on Equity |
25.7%
|
-24.3%
|
| Dividend Yield |
1.95% |
2.57% |
| FCF Yield |
2.83%
|
3.29%
|
| Analyst Consensus |
Buy
|
Buy
|
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:โฆ
Starbucks is the world's largest specialty coffee retailer, operating company-owned and licensed coffeehouses across North America, International, and Channel Development segments, with a brand that has historically supported premium pricing and global scale. The business quality is currently strained: revenue declined 1.4% year over year in the most recent quarter, TTM operating margin is 9.4%, โฆ
Accumulation Zones
| Metric |
JNJ |
SBUX |
| Zone Low |
$214.54 |
$81.39 |
| Zone High |
$243.14 |
$92.24 |
| In Buy Zone? |
No
|
No
|