Head-To-Head Comparison: lululemon athletica (LULU) & Its Peers

lululemon athletica (NASDAQ:LULU) is one of 117 publicly-traded companies in the “Textiles, Apparel & Luxury Goods” industry, but how does it contrast to its competitors? We will compare lululemon athletica to similar businesses based on the strength of its analyst recommendations, valuation, risk, earnings, dividends, institutional ownership and profitability.

Insider & Institutional Ownership

85.2% of lululemon athletica shares are held by institutional investors. Comparatively, 54.1% of shares of all “Textiles, Apparel & Luxury Goods” companies are held by institutional investors. 0.5% of lululemon athletica shares are held by insiders. Comparatively, 16.1% of shares of all “Textiles, Apparel & Luxury Goods” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares lululemon athletica and its competitors gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
lululemon athletica	$11.09 billion	$1.58 billion	9.11
lululemon athletica Competitors	$5.67 billion	$471.75 million	25.18

lululemon athletica has higher revenue and earnings than its competitors. lululemon athletica is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a breakdown of current recommendations for lululemon athletica and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
lululemon athletica	7	22	0	1	1.83
lululemon athletica Competitors	1651	7653	10073	364	2.46

lululemon athletica presently has a consensus target price of $105.26, indicating a potential downside of 5.35%. As a group, “Textiles, Apparel & Luxury Goods” companies have a potential upside of 12.51%. Given lululemon athletica’s competitors stronger consensus rating and higher possible upside, analysts clearly believe lululemon athletica has less favorable growth aspects than its competitors.

Volatility and Risk

lululemon athletica has a beta of 0.84, indicating that its share price is 16% less volatile than the S&P 500. Comparatively, lululemon athletica’s competitors have a beta of 0.92, indicating that their average share price is 8% less volatile than the S&P 500.

Profitability

This table compares lululemon athletica and its competitors’ 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%
lululemon athletica Competitors	-3.37%	12.96%	2.77%

Summary

lululemon athletica beats its competitors on 7 of the 13 factors compared.

lululemon athletica Company Profile

Lululemon Athletica Inc., together with its subsidiaries, designs, distributes, and retails athletic apparel, footwear, and accessories under the lululemon brand for women and men. It offers pants, shorts, tops, and jackets for healthy lifestyle, such as yoga, running, training, and other activities. It also provides fitness-inspired accessories. The company sells its products through a chain of company-operated stores; outlets; interactive workout platform; yoga and fitness studios, university campus retailers, and other partners; license and supply arrangements; and temporary locations, as well as through mobile apps and lululemon.com e-commerce website. It has operations in the United States, Canada, Mainland China, Australia, South Korea, Hong Kong, Japan, New Zealand, Taiwan, Singapore, Malaysia, Macau, Thailand, the Asia Pacific, the United Kingdom, Germany, France, Ireland, Spain, the Netherlands, Sweden, Norway, Switzerland, Europe, the Middle East, and Africa. Lululemon Athletica Inc. was founded in 1998 and is based in Vancouver, Canada.