Lululemon Athletica Inc. (LULU)vsRoss Stores Inc (ROST)
LULU
Lululemon Athletica Inc.
$107.83
+0.55%
CONSUMER CYCLICAL · Cap: $12.19B
ROST
Ross Stores Inc
$230.59
+1.01%
CONSUMER CYCLICAL · Cap: $73.23B
Smart Verdict
WallStSmart Research — data-driven comparison
Ross Stores Inc generates 121% more annual revenue ($24.51B vs $11.09B). LULU leads profitability with a 12.8% profit margin vs 10.8%. LULU appears more attractively valued with a PEG of 1.05. ROST earns a higher WallStSmart Score of 64/100 (C+).
LULU
Buy60
out of 100
Grade: C
ROST
Buy64
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+70.2%
Fair Value
$589.81
Current Price
$107.83
$481.98 discount
Margin of Safety
-4.7%
Fair Value
$183.99
Current Price
$230.59
$46.60 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Safe zone — low bankruptcy risk
Every $100 of equity generates 30 in profit
Reasonable price relative to book value
Every $100 of equity generates 39 in profit
Earnings expanding 70.5% YoY
Safe zone — low bankruptcy risk
Large-cap with strong market position
Areas to Watch
Weak financial health signals
Revenue declined 4.3%
Earnings declined 5.9%
Expensive relative to growth rate
Moderate valuation
Trading at 10.9x book value
Comparative Analysis Report
WallStSmart ResearchBull 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 : ROST
The strongest argument for ROST centers on Return on Equity, EPS Growth, Altman Z-Score. Revenue growth of 13.3% demonstrates continued momentum.
Bear Case : LULU
The primary concerns for LULU are Piotroski F-Score, Revenue Growth, EPS Growth.
Bear Case : ROST
The primary concerns for ROST are PEG Ratio, P/E Ratio, Price/Book.
Key Dynamics to Monitor
LULU profiles as a declining stock while ROST is a value play — different risk/reward profiles.
LULU carries more volatility with a beta of 0.92 — expect wider price swings.
ROST is growing revenue faster at 13.3% — sustainability is the question.
ROST generates stronger free cash flow (624M), providing more financial flexibility.
Bottom Line
ROST scores higher overall (64/100 vs 60/100) and 13.3% revenue growth. LULU offers better value entry with a 70.2% margin of safety. 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.
Visit Website →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 →Compare with Other APPAREL RETAIL Stocks
Want to dig deeper into these stocks?