lululemon athletica inc. (LULU) & Its Rivals Head-To-Head Survey

lululemon athletica inc. (NASDAQ: LULU) is one of 26 publicly-traded companies in the “Apparel & Accessories” industry, but how does it compare to its competitors? We will compare lululemon athletica inc. to similar businesses based on the strength of its profitability, risk, institutional ownership, dividends, analyst recommendations, valuation and earnings.

Insider & Institutional Ownership

79.5% 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 endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

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

Gross Revenue EBITDA Price/Earnings Ratio
lululemon athletica inc. $2.44 billion $519.98 million 28.15
lululemon athletica inc. Competitors $2.68 billion $378.24 million -4.48

lululemon athletica inc.’s competitors have higher revenue, but lower earnings than lululemon athletica inc.. lululemon athletica inc. is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for lululemon athletica inc. and its competitors, as provided 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 301 1344 1922 76 2.49

lululemon athletica inc. currently has a consensus target price of $65.71, indicating a potential upside of 12.22%. As a group, “Apparel & Accessories” companies have a potential upside of 7.22%. Given lululemon athletica inc.’s higher probable upside, equities research analysts plainly believe lululemon athletica inc. is more favorable than its competitors.

Profitability

This table compares lululemon athletica inc. and its competitors’ 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 -1,510.85% 0.36% -4.73%

Volatility and Risk

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 competitors have a beta of 0.72, indicating that their average share price is 28% less volatile than the S&P 500.

Summary

lululemon athletica inc. beats its competitors 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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