Lululemon Athletica Inc. (LULU)vsWaters Corporation (WAT)
LULU
Lululemon Athletica Inc.
$131.18
-1.80%
CONSUMER CYCLICAL · Cap: $15.67B
WAT
Waters Corporation
$355.13
+1.32%
HEALTHCARE · Cap: $34.41B
Smart Verdict
WallStSmart Research — data-driven comparison
Lululemon Athletica Inc. generates 194% more annual revenue ($11.10B vs $3.77B). LULU leads profitability with a 14.2% profit margin vs 11.9%. LULU appears more attractively valued with a PEG of 0.62. LULU earns a higher WallStSmart Score of 65/100 (B-).
LULU
Strong Buy65
out of 100
Grade: B-
WAT
Buy52
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+71.1%
Fair Value
$608.14
Current Price
$131.18
$476.96 discount
Margin of Safety
-63.1%
Fair Value
$201.83
Current Price
$355.13
$153.30 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%
Revenue surging 91.5% year-over-year
Safe zone — low bankruptcy risk
Areas to Watch
0.8% revenue growth
Weak financial health signals
Earnings declined 18.5%
Expensive relative to growth rate
Trading at 8.3x book value
ROE of 5.2% — below average capital efficiency
Premium valuation, high expectations priced in
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 0.62 suggests the stock is reasonably priced for its growth.
Bull Case : WAT
The strongest argument for WAT centers on Revenue Growth, Altman Z-Score. Revenue growth of 91.5% demonstrates continued momentum.
Bear Case : LULU
The primary concerns for LULU are Revenue Growth, Piotroski F-Score, EPS Growth.
Bear Case : WAT
The primary concerns for WAT are PEG Ratio, Price/Book, Return on Equity. A P/E of 44.6x leaves little room for execution misses.
Key Dynamics to Monitor
LULU profiles as a value stock while WAT is a growth play — different risk/reward profiles.
WAT carries more volatility with a beta of 1.14 — expect wider price swings.
WAT is growing revenue faster at 91.5% — sustainability is the question.
LULU generates stronger free cash flow (960M), providing more financial flexibility.
Bottom Line
LULU scores higher overall (65/100 vs 52/100). 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 →Waters Corporation
HEALTHCARE · DIAGNOSTICS & RESEARCH · USA
Waters Corporation is a publicly traded Analytical Laboratory instrument and software company headquartered in Milford, Massachusetts.
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