WallStSmart

Lululemon Athletica Inc. (LULU)vsRoss Stores Inc (ROST)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Ross Stores Inc generates 112% more annual revenue ($23.78B vs $11.20B). LULU leads profitability with a 13.0% profit margin vs 9.7%. LULU appears more attractively valued with a PEG of 0.58. ROST earns a higher WallStSmart Score of 64/100 (C+).

LULU

Buy

64

out of 100

Grade: C+

Growth: 4.7Profit: 8.0Value: 9.3Quality: 7.5
Piotroski: 3/9Altman Z: 4.12

ROST

Buy

64

out of 100

Grade: C+

Growth: 8.0Profit: 7.5Value: 3.3Quality: 7.0
Piotroski: 5/9Altman Z: 3.11
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

LULUUndervalued (+70.6%)

Margin of Safety

+70.6%

Fair Value

$598.31

Current Price

$114.23

$484.08 discount

UndervaluedFair: $598.31Overvalued
ROSTOvervalued (-8.4%)

Margin of Safety

-8.4%

Fair Value

$177.67

Current Price

$230.37

$52.70 premium

UndervaluedFair: $177.67Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

LULU5 strengths · Avg: 9.2/10
P/E RatioValuation
9.6x10/10

Attractively priced relative to earnings

Return on EquityProfitability
30.3%10/10

Every $100 of equity generates 30 in profit

Altman Z-ScoreHealth
4.1210/10

Safe zone — low bankruptcy risk

PEG RatioValuation
0.588/10

Growing faster than its price suggests

Price/BookValuation
2.7x8/10

Reasonable price relative to book value

ROST5 strengths · Avg: 9.0/10
Return on EquityProfitability
36.7%10/10

Every $100 of equity generates 37 in profit

Altman Z-ScoreHealth
3.1110/10

Safe zone — low bankruptcy risk

Market CapQuality
$75.95B9/10

Large-cap with strong market position

Revenue GrowthGrowth
20.6%8/10

Revenue surging 20.6% year-over-year

EPS GrowthGrowth
37.4%8/10

Earnings expanding 37.4% YoY

Areas to Watch

LULU3 concerns · Avg: 3.0/10
Revenue GrowthGrowth
4.3%4/10

4.3% revenue growth

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

EPS GrowthGrowth
-35.0%2/10

Earnings declined 35.0%

ROST3 concerns · Avg: 3.3/10
P/E RatioValuation
33.5x4/10

Premium valuation, high expectations priced in

Price/BookValuation
11.7x4/10

Trading at 11.7x book value

PEG RatioValuation
2.842/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : LULU

The strongest argument for LULU centers on P/E Ratio, Return on Equity, Altman Z-Score. PEG of 0.58 suggests the stock is reasonably priced for its growth.

Bull Case : ROST

The strongest argument for ROST centers on Return on Equity, Altman Z-Score, Market Cap. Revenue growth of 20.6% demonstrates continued momentum.

Bear Case : LULU

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

Bear Case : ROST

The primary concerns for ROST are P/E Ratio, Price/Book, PEG Ratio.

Key Dynamics to Monitor

LULU profiles as a value stock while ROST is a growth play — different risk/reward profiles.

ROST carries more volatility with a beta of 0.87 — expect wider price swings.

ROST is growing revenue faster at 20.6% — sustainability is the question.

ROST generates stronger free cash flow (627M), providing more financial flexibility.

Bottom Line

LULU scores higher overall (64/100 vs 64/100). Both earn "Buy" and "Buy" 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.

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Ross Stores Inc

CONSUMER CYCLICAL · APPAREL RETAIL · USA

Ross Stores, Inc., operating under the brand name Ross Dress for Less, is an American chain of discount department stores headquartered in Dublin, California.

Visit Website →

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