Lululemon Athletica Inc. (LULU)vsYum! Brands Inc (YUM)
LULU
Lululemon Athletica Inc.
$158.72
-1.39%
CONSUMER CYCLICAL · Cap: $18.62B
YUM
Yum! Brands Inc
$159.16
-0.17%
CONSUMER CYCLICAL · Cap: $44.27B
Smart Verdict
WallStSmart Research — data-driven comparison
Lululemon Athletica Inc. generates 35% more annual revenue ($11.10B vs $8.21B). YUM leads profitability with a 19.0% profit margin vs 14.2%. LULU appears more attractively valued with a PEG of 0.90. LULU earns a higher WallStSmart Score of 65/100 (B-).
LULU
Strong Buy65
out of 100
Grade: B-
YUM
Buy59
out of 100
Grade: C
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
+38.8%
Fair Value
$259.74
Current Price
$159.16
$100.58 discount
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%
Strong operational efficiency at 31.9%
Earnings expanding 27.7% YoY
Areas to Watch
0.8% revenue growth
Weak financial health signals
Earnings declined 18.5%
Expensive relative to growth rate
Moderate valuation
ROE of 0.0% — below average capital efficiency
Weak financial health signals
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 : YUM
The strongest argument for YUM centers on Operating Margin, EPS Growth. Profitability is solid with margins at 19.0% and operating margin at 31.9%.
Bear Case : LULU
The primary concerns for LULU are Revenue Growth, Piotroski F-Score, EPS Growth.
Bear Case : YUM
The primary concerns for YUM are PEG Ratio, P/E Ratio, Return on Equity.
Key Dynamics to Monitor
LULU profiles as a value stock while YUM is a mature play — different risk/reward profiles.
LULU carries more volatility with a beta of 1.01 — expect wider price swings.
YUM is growing revenue faster at 6.5% — sustainability is the question.
LULU generates stronger free cash flow (960M), providing more financial flexibility.
Bottom Line
LULU scores higher overall (65/100 vs 59/100). YUM offers better value entry with a 38.8% margin of safety. 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 →Yum! Brands Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
Yum! Brands, Inc. is an American fast food corporation listed on the Fortune 1000. Yum! operates the brands KFC, Pizza Hut, Taco Bell, The Habit Burger Grill, and WingStreet worldwide, except in China, where the brands are operated by a separate company, Yum China.
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