Head-To-Head Analysis: lululemon athletica inc. (LULU) vs. The Competition
lululemon athletica inc. (NASDAQ: LULU) is one of 26 public companies in the “Apparel & Accessories” industry, but how does it compare to its peers? We will compare lululemon athletica inc. to similar companies based on the strength of its earnings, profitability, valuation, institutional ownership, dividends, analyst recommendations and risk.
This table compares lululemon athletica inc. and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|lululemon athletica inc.||11.68%||22.51%||18.58%|
|lululemon athletica inc. Competitors||-1,518.09%||-7.10%||-7.77%|
Earnings & Valuation
This table compares lululemon athletica inc. and its peers top-line revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|lululemon athletica inc.||$2.44 billion||$519.98 million||29.57|
|lululemon athletica inc. Competitors||$2.68 billion||$378.14 million||-4.10|
lululemon athletica inc.’s peers have higher revenue, but lower earnings than lululemon athletica inc.. lululemon athletica inc. is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
Risk and Volatility
lululemon athletica inc. has a beta of 0.22, indicating that its share price is 78% less volatile than the S&P 500. Comparatively, lululemon athletica inc.’s peers have a beta of 0.72, indicating that their average share price is 28% less volatile than the S&P 500.
Insider and Institutional Ownership
79.6% of lululemon athletica inc. shares are held by institutional investors. Comparatively, 48.4% of shares of all “Apparel & Accessories” companies are held by institutional investors. 0.3% of lululemon athletica inc. shares are held by insiders. Comparatively, 27.3% of shares of all “Apparel & Accessories” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
This is a summary of current ratings for lululemon athletica inc. and its peers, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|lululemon athletica inc.||3||16||18||0||2.41|
|lululemon athletica inc. Competitors||297||1336||1915||76||2.49|
lululemon athletica inc. currently has a consensus target price of $65.71, suggesting a potential upside of 6.85%. As a group, “Apparel & Accessories” companies have a potential upside of 3.99%. Given lululemon athletica inc.’s higher possible upside, equities research analysts clearly believe lululemon athletica inc. is more favorable than its peers.
lululemon athletica inc. beats its peers on 7 of the 13 factors compared.
About lululemon athletica inc.
lululemon athletica inc. is a designer, distributor and retailer of athletic apparel. The Company operates through two segments: Company-operated stores and Direct to consumer. It is also engaged in the sale from outlets, showrooms, sales from temporary locations, sales to wholesale accounts, warehouse sales, and license and supply arrangements. Its direct to consumer segment generates revenue from its lululemon and ivivva e-commerce Websites, www.lululemon.com and www.ivivva.com, and other country and region specific Websites. It offers a range of apparel and accessories for women, men and female youth. The Company’s apparel assortment includes items, such as pants, shorts, tops, and jackets designed for healthy lifestyle and athletic activities, such as yoga, running, training, most other sweaty pursuits, and athletic wear for female youth. The Company also offers fitness-related accessories, including an array of items, such as bags, socks, underwear, yoga mats and water bottles.
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