Unfortunately not. Their healing spells, despite getting better, are definitely outclassed by any priest (primarily clerics).
Not only that, I believe their mana pools are quite a bit smaller than the priest classes. Paladin's primary duty is to tank, and if there is someone else tanking, off-tank or assist in damage / healing.
I don't think it's uncommon for a paladin to off-heal targets in small group settings, but generally you're going to be focused on absorbing damage. A better heal in this case would be to pull aggro off those who have pulled it from the main tank and absorb the damage instead, as you're much more capable of taking it.
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