WallStSmart

Lululemon Athletica Inc. (LULU)vsRent the Runway Inc (RENT)

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Smart Verdict

WallStSmart Research — data-driven comparison

Lululemon Athletica Inc. generates 2924% more annual revenue ($11.09B vs $366.90M). LULU leads profitability with a 12.8% profit margin vs 11.8%. RENT trades at a lower P/E of 0.2x. LULU earns a higher WallStSmart Score of 60/100 (C).

LULU

Buy

60

out of 100

Grade: C

Growth: 4.0Profit: 7.5Value: 8.7Quality: 7.5
Piotroski: 3/9Altman Z: 4.12

RENT

Hold

36

out of 100

Grade: F

Growth: 5.3Profit: 3.0Value: 6.7Quality: 5.0
Piotroski: 5/9Altman Z: -5.27
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

LULUUndervalued (+70.1%)

Margin of Safety

+70.1%

Fair Value

$588.02

Current Price

$110.79

$477.23 discount

UndervaluedFair: $588.02Overvalued

Intrinsic value data unavailable for RENT.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

LULU4 strengths · Avg: 9.3/10
P/E RatioValuation
8.6x10/10

Attractively priced relative to earnings

Altman Z-ScoreHealth
4.1210/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
29.6%9/10

Every $100 of equity generates 30 in profit

Price/BookValuation
2.6x8/10

Reasonable price relative to book value

RENT3 strengths · Avg: 9.3/10
P/E RatioValuation
0.2x10/10

Attractively priced relative to earnings

Debt/EquityHealth
-2.9910/10

Conservative balance sheet, low leverage

Revenue GrowthGrowth
20.8%8/10

Revenue surging 20.8% year-over-year

Areas to Watch

LULU3 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Revenue GrowthGrowth
-4.3%2/10

Revenue declined 4.3%

EPS GrowthGrowth
-5.9%2/10

Earnings declined 5.9%

RENT4 concerns · Avg: 2.8/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$78.04M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-775.0%2/10

ROE of -775.0% — below average capital efficiency

Free Cash FlowQuality
$-2.80M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : LULU

The strongest argument for LULU centers on P/E Ratio, Altman Z-Score, Return on Equity. PEG of 1.05 suggests the stock is reasonably priced for its growth.

Bull Case : RENT

The strongest argument for RENT centers on P/E Ratio, Debt/Equity, Revenue Growth. Revenue growth of 20.8% demonstrates continued momentum.

Bear Case : LULU

The primary concerns for LULU are Piotroski F-Score, Revenue Growth, EPS Growth.

Bear Case : RENT

The primary concerns for RENT are EPS Growth, Market Cap, Return on Equity.

Key Dynamics to Monitor

LULU profiles as a declining stock while RENT is a growth play — different risk/reward profiles.

RENT carries more volatility with a beta of 1.24 — expect wider price swings.

RENT is growing revenue faster at 20.8% — sustainability is the question.

LULU generates stronger free cash flow (225M), providing more financial flexibility.

Bottom Line

LULU scores higher overall (60/100 vs 36/100). Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Lululemon Athletica Inc.

CONSUMER CYCLICAL · APPAREL RETAIL · USA

lululemon athletica inc. The company is headquartered in Vancouver, Canada.

Visit Website →

Rent the Runway Inc

CONSUMER CYCLICAL · APPAREL RETAIL · USA

Rent the Runway, Inc. rents women's designer dresses, clothing and accessories through its stores and online platform.

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