Lululemon Athletica Inc. (LULU)vsUbiquiti Networks Inc (UI)
LULU
Lululemon Athletica Inc.
$158.72
-1.39%
CONSUMER CYCLICAL · Cap: $18.62B
UI
Ubiquiti Networks Inc
$839.05
+0.55%
TECHNOLOGY · Cap: $50.50B
Smart Verdict
WallStSmart Research — data-driven comparison
Lululemon Athletica Inc. generates 274% more annual revenue ($11.10B vs $2.97B). UI leads profitability with a 29.9% profit margin vs 14.2%. UI appears more attractively valued with a PEG of 0.82. UI earns a higher WallStSmart Score of 73/100 (B).
LULU
Strong Buy65
out of 100
Grade: B-
UI
Strong Buy73
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-95.2%
Fair Value
$90.10
Current Price
$158.72
$68.62 premium
Margin of Safety
-4.0%
Fair Value
$685.62
Current Price
$839.05
$153.43 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Every $100 of equity generates 34 in profit
Safe zone — low bankruptcy risk
Growing faster than its price suggests
Strong operational efficiency at 22.3%
Every $100 of equity generates 136 in profit
Strong operational efficiency at 35.9%
Revenue surging 35.8% year-over-year
Earnings expanding 70.8% YoY
Safe zone — low bankruptcy risk
Large-cap with strong market position
Areas to Watch
0.8% revenue growth
Weak financial health signals
Earnings declined 18.5%
Premium valuation, high expectations priced in
Trading at 50.0x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : LULU
The strongest argument for LULU centers on P/E Ratio, Return on Equity, Altman Z-Score. PEG of 0.90 suggests the stock is reasonably priced for its growth.
Bull Case : UI
The strongest argument for UI centers on Return on Equity, Operating Margin, Revenue Growth. Profitability is solid with margins at 29.9% and operating margin at 35.9%. Revenue growth of 35.8% demonstrates continued momentum.
Bear Case : LULU
The primary concerns for LULU are Revenue Growth, Piotroski F-Score, EPS Growth.
Bear Case : UI
The primary concerns for UI are P/E Ratio, Price/Book. A P/E of 57.0x leaves little room for execution misses.
Key Dynamics to Monitor
LULU profiles as a value stock while UI is a growth play — different risk/reward profiles.
UI carries more volatility with a beta of 1.37 — expect wider price swings.
UI is growing revenue faster at 35.8% — sustainability is the question.
LULU generates stronger free cash flow (960M), providing more financial flexibility.
Bottom Line
UI scores higher overall (73/100 vs 65/100), backed by strong 29.9% margins and 35.8% revenue growth. Both earn "Strong Buy" and "Strong 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 →Ubiquiti Networks Inc
TECHNOLOGY · COMMUNICATION EQUIPMENT · USA
Ubiquiti Inc. develops network technology for service providers, businesses and consumers. The company is headquartered in New York, New York.
Compare with Other APPAREL RETAIL Stocks
Want to dig deeper into these stocks?