WallStSmart

Carter’s Inc (CRI)vsLululemon Athletica Inc. (LULU)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Lululemon Athletica Inc. generates 283% more annual revenue ($11.10B vs $2.90B). LULU leads profitability with a 14.2% profit margin vs 3.2%. LULU appears more attractively valued with a PEG of 0.90. LULU earns a higher WallStSmart Score of 65/100 (B-).

CRI

Buy

53

out of 100

Grade: C-

Growth: 4.0Profit: 5.5Value: 8.0Quality: 5.0

LULU

Strong Buy

65

out of 100

Grade: B-

Growth: 4.7Profit: 8.5Value: 7.3Quality: 8.0
Piotroski: 2/9Altman Z: 4.32
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CRIOvervalued (-13.2%)

Margin of Safety

-13.2%

Fair Value

$33.40

Current Price

$34.93

$1.53 premium

UndervaluedFair: $33.40Overvalued
LULUSignificantly Overvalued (-95.2%)

Margin of Safety

-95.2%

Fair Value

$90.10

Current Price

$158.72

$68.62 premium

UndervaluedFair: $90.10Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CRI2 strengths · Avg: 9.0/10
Price/BookValuation
1.4x10/10

Reasonable price relative to book value

P/E RatioValuation
13.8x8/10

Attractively priced relative to earnings

LULU5 strengths · Avg: 9.2/10
P/E RatioValuation
12.0x10/10

Attractively priced relative to earnings

Return on EquityProfitability
34.0%10/10

Every $100 of equity generates 34 in profit

Altman Z-ScoreHealth
4.3210/10

Safe zone — low bankruptcy risk

PEG RatioValuation
0.908/10

Growing faster than its price suggests

Operating MarginProfitability
22.3%8/10

Strong operational efficiency at 22.3%

Areas to Watch

CRI4 concerns · Avg: 3.5/10
PEG RatioValuation
2.014/10

Expensive relative to growth rate

EPS GrowthGrowth
4.0%4/10

4.0% earnings growth

Market CapQuality
$1.27B3/10

Smaller company, higher risk/reward

Profit MarginProfitability
3.2%3/10

3.2% margin — thin

LULU3 concerns · Avg: 3.0/10
Revenue GrowthGrowth
0.8%4/10

0.8% revenue growth

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

EPS GrowthGrowth
-18.5%2/10

Earnings declined 18.5%

Comparative Analysis Report

WallStSmart Research

Bull Case : CRI

The strongest argument for CRI centers on Price/Book, P/E Ratio.

Bull 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.

Bear Case : CRI

The primary concerns for CRI are PEG Ratio, EPS Growth, Market Cap. Thin 3.2% margins leave little buffer for downturns.

Bear Case : LULU

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

Key Dynamics to Monitor

CRI carries more volatility with a beta of 1.05 — expect wider price swings.

CRI is growing revenue faster at 7.6% — sustainability is the question.

LULU generates stronger free cash flow (960M), providing more financial flexibility.

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

Bottom Line

LULU scores higher overall (65/100 vs 53/100). 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.

Carter’s Inc

CONSUMER CYCLICAL · APPAREL RETAIL · USA

Carter's, Inc. designs, supplies, and markets branded children's clothing under the brands Carter's, OshKosh, Skip Hop, Child of Mine, Just One You, Simple Joys, Carter's little baby basics, and other brands in the United States and internationally. The company is headquartered in Atlanta, Georgia.

Lululemon Athletica Inc.

CONSUMER CYCLICAL · APPAREL RETAIL · USA

lululemon athletica inc. The company is headquartered in Vancouver, Canada.

Visit Website →

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