WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Lululemon Athletica Inc. generates 80% more annual revenue ($11.10B vs $6.17B). LULU leads profitability with a 14.2% profit margin vs 7.5%. LULU appears more attractively valued with a PEG of 0.91. LULU earns a higher WallStSmart Score of 65/100 (B-).

LULU

Strong Buy

65

out of 100

Grade: B-

Growth: 6.7Profit: 8.5Value: 7.3Quality: 8.0
Piotroski: 2/9Altman Z: 4.32

URBN

Buy

60

out of 100

Grade: C

Growth: 4.7Profit: 6.0Value: 7.3Quality: 6.8
Piotroski: 5/9Altman Z: 3.41
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

LULUSignificantly Overvalued (-82.8%)

Margin of Safety

-82.8%

Fair Value

$96.22

Current Price

$162.82

$66.60 premium

UndervaluedFair: $96.22Overvalued
URBNSignificantly Overvalued (-110.8%)

Margin of Safety

-110.8%

Fair Value

$33.46

Current Price

$63.39

$29.93 premium

UndervaluedFair: $33.46Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

LULU6 strengths · Avg: 9.3/10
P/E RatioValuation
11.5x10/10

Attractively priced relative to earnings

Return on EquityProfitability
34.0%10/10

Every $100 of equity generates 34 in profit

Revenue GrowthGrowth
80.0%10/10

Revenue surging 80.0% year-over-year

Altman Z-ScoreHealth
4.3210/10

Safe zone — low bankruptcy risk

PEG RatioValuation
0.918/10

Growing faster than its price suggests

Operating MarginProfitability
22.3%8/10

Strong operational efficiency at 22.3%

URBN3 strengths · Avg: 8.7/10
Altman Z-ScoreHealth
3.4110/10

Safe zone — low bankruptcy risk

P/E RatioValuation
12.9x8/10

Attractively priced relative to earnings

Price/BookValuation
2.0x8/10

Reasonable price relative to book value

Areas to Watch

LULU2 concerns · Avg: 2.5/10
Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

EPS GrowthGrowth
-18.5%2/10

Earnings declined 18.5%

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

7.5% margin — thin

EPS GrowthGrowth
-17.4%2/10

Earnings declined 17.4%

Comparative Analysis Report

WallStSmart Research

Bull Case : LULU

The strongest argument for LULU centers on P/E Ratio, Return on Equity, Revenue Growth. Revenue growth of 80.0% demonstrates continued momentum. PEG of 0.91 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 10.1% demonstrates continued momentum. PEG of 1.03 suggests the stock is reasonably priced for its growth.

Bear Case : LULU

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

Bear Case : URBN

The primary concerns for URBN are Profit Margin, EPS Growth.

Key Dynamics to Monitor

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

URBN carries more volatility with a beta of 1.21 — expect wider price swings.

LULU is growing revenue faster at 80.0% — sustainability is the question.

LULU generates stronger free cash flow (922M), providing more financial flexibility.

Bottom Line

LULU scores higher overall (65/100 vs 60/100) and 80.0% revenue growth. Both earn "Strong 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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