Lululemon Athletica Inc. (LULU)vsWest Pharmaceutical Services Inc (WST)
LULU
Lululemon Athletica Inc.
$131.18
-1.80%
CONSUMER CYCLICAL · Cap: $15.67B
WST
West Pharmaceutical Services Inc
$325.92
+1.21%
HEALTHCARE · Cap: $22.08B
Smart Verdict
WallStSmart Research — data-driven comparison
Lululemon Athletica Inc. generates 245% more annual revenue ($11.10B vs $3.22B). WST leads profitability with a 16.9% profit margin vs 14.2%. LULU appears more attractively valued with a PEG of 0.62. WST earns a higher WallStSmart Score of 67/100 (B-).
LULU
Strong Buy65
out of 100
Grade: B-
WST
Strong Buy67
out of 100
Grade: B-
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
-32.4%
Fair Value
$185.95
Current Price
$325.92
$139.97 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%
Earnings expanding 56.1% YoY
Safe zone — low bankruptcy risk
Strong operational efficiency at 21.7%
Revenue surging 21.0% year-over-year
Areas to Watch
0.8% revenue growth
Weak financial health signals
Earnings declined 18.5%
Expensive relative to growth rate
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 : WST
The strongest argument for WST centers on EPS Growth, Altman Z-Score, Operating Margin. Profitability is solid with margins at 16.9% and operating margin at 21.7%. Revenue growth of 21.0% demonstrates continued momentum.
Bear Case : LULU
The primary concerns for LULU are Revenue Growth, Piotroski F-Score, EPS Growth.
Bear Case : WST
The primary concerns for WST are PEG Ratio, P/E Ratio. A P/E of 41.8x leaves little room for execution misses.
Key Dynamics to Monitor
LULU profiles as a value stock while WST is a growth play — different risk/reward profiles.
WST carries more volatility with a beta of 1.17 — expect wider price swings.
WST is growing revenue faster at 21.0% — sustainability is the question.
LULU generates stronger free cash flow (960M), providing more financial flexibility.
Bottom Line
WST scores higher overall (67/100 vs 65/100), backed by strong 16.9% margins and 21.0% revenue growth. LULU offers better value entry with a 71.1% margin of safety. 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 →West Pharmaceutical Services Inc
HEALTHCARE · MEDICAL INSTRUMENTS & SUPPLIES · USA
West Pharmaceutical Services, Inc. is a designer and manufacturer of injectable pharmaceutical packaging and delivery systems. The company is headquartered in Exton, Pennsylvania.
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