WallStSmart

Lululemon Athletica Inc. (LULU)vsUrban Outfitters Inc (URBN)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Lululemon Athletica Inc. generates 77% more annual revenue ($11.20B vs $6.32B). LULU leads profitability with a 13.0% profit margin vs 7.5%. LULU appears more attractively valued with a PEG of 0.58. LULU 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

URBN

Buy

63

out of 100

Grade: C+

Growth: 6.0Profit: 6.5Value: 6.7Quality: 7.5
Piotroski: 6/9Altman Z: 3.32
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

LULUUndervalued (+70.7%)

Margin of Safety

+70.7%

Fair Value

$600.18

Current Price

$114.23

$485.95 discount

UndervaluedFair: $600.18Overvalued
URBNUndervalued (+2.0%)

Margin of Safety

+2.0%

Fair Value

$71.98

Current Price

$71.30

$0.68 discount

UndervaluedFair: $71.98Overvalued

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

URBN3 strengths · Avg: 8.7/10
Altman Z-ScoreHealth
3.3210/10

Safe zone — low bankruptcy risk

P/E RatioValuation
14.8x8/10

Attractively priced relative to earnings

Price/BookValuation
2.3x8/10

Reasonable price relative to book value

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%

URBN2 concerns · Avg: 2.5/10
Profit MarginProfitability
7.5%3/10

7.5% margin — thin

Free Cash FlowQuality
$-177.76M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : LULU

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

Bull Case : URBN

The strongest argument for URBN centers on Altman Z-Score, P/E Ratio, Price/Book. Revenue growth of 11.4% demonstrates continued momentum. PEG of 1.34 suggests the stock is reasonably priced for its growth.

Bear Case : LULU

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

Bear Case : URBN

The primary concerns for URBN are Profit Margin, Free Cash Flow.

Key Dynamics to Monitor

URBN carries more volatility with a beta of 1.22 — expect wider price swings.

URBN is growing revenue faster at 11.4% — sustainability is the question.

LULU generates stronger free cash flow (87M), providing more financial flexibility.

Monitor APPAREL RETAIL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

LULU scores higher overall (64/100 vs 63/100). 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.

Visit Website →

Urban Outfitters Inc

CONSUMER CYCLICAL · APPAREL RETAIL · USA

Urban Outfitters, Inc. is engaged in the retail and wholesale of general consumer products. The company is headquartered in Philadelphia, Pennsylvania.

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