Capri (NYSE:CPRI) and lululemon athletica (NASDAQ:LULU) Head to Head Review

lululemon athletica (NASDAQ:LULU) and Capri (NYSE:CPRI) are both consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, institutional ownership, dividends, valuation and risk.

Profitability

This table compares lululemon athletica and Capri’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
lululemon athletica	12.78%	27.69%	15.81%
Capri	6.12%	242.96%	7.54%

Earnings and Valuation

This table compares lululemon athletica and Capri”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
lululemon athletica	$11.10 billion	1.10	$1.58 billion	$12.21	8.65
Capri	$3.47 billion	0.64	$137.00 million	$1.77	12.12

lululemon athletica has higher revenue and earnings than Capri. lululemon athletica is trading at a lower price-to-earnings ratio than Capri, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

lululemon athletica has a beta of 0.84, meaning that its share price is 16% less volatile than the S&P 500. Comparatively, Capri has a beta of 1.27, meaning that its share price is 27% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for lululemon athletica and Capri, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
lululemon athletica	7	23	0	1	1.84
Capri	1	9	4	2	2.44

lululemon athletica currently has a consensus price target of $105.92, indicating a potential upside of 0.25%. Capri has a consensus price target of $22.13, indicating a potential upside of 3.17%. Given Capri’s stronger consensus rating and higher possible upside, analysts clearly believe Capri is more favorable than lululemon athletica.

Institutional and Insider Ownership

85.2% of lululemon athletica shares are held by institutional investors. Comparatively, 84.3% of Capri shares are held by institutional investors. 0.5% of lululemon athletica shares are held by company insiders. Comparatively, 2.6% of Capri shares are held by company 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.

Summary

Capri beats lululemon athletica on 8 of the 15 factors compared between the two stocks.

About lululemon athletica

lululemon athletica inc. is a Canadian athletic apparel and lifestyle company founded in Vancouver in 1998. It designs and sells technical clothing and accessories for activities including yoga, running, training and other forms of exercise, as well as everyday wear. Its product range includes apparel for women and men, footwear, bags and other fitness-related accessories. The company sells through its own retail stores and e-commerce channels, serving customers in North America and international markets. lululemon also supports fitness and wellness communities through events and other local initiatives, extending its brand beyond its products and retail operations.

About Capri

Capri Holdings Limited is a global fashion group focused on designing, marketing and distributing luxury apparel, footwear, handbags, accessories and related products. Its portfolio includes Michael Kors and Jimmy Choo, whose products are sold through company-operated stores, e-commerce platforms and wholesale partners. The company serves customers in markets around the world, including North America, Europe and Asia. Its brands offer a range of products, including ready-to-wear clothing, shoes, bags, watches, eyewear, jewelry and fragrances.