Lululemon Athletica Inc. (LULU)vsRent the Runway Inc (RENT)
LULU
Lululemon Athletica Inc.
$158.72
-1.39%
CONSUMER CYCLICAL · Cap: $18.62B
RENT
Rent the Runway Inc
$4.81
+2.34%
CONSUMER CYCLICAL · Cap: $161.02M
Smart Verdict
WallStSmart Research — data-driven comparison
Lululemon Athletica Inc. generates 3430% more annual revenue ($11.10B vs $314.50M). LULU leads profitability with a 14.2% profit margin vs 3.4%. RENT trades at a lower P/E of 1.7x. LULU earns a higher WallStSmart Score of 65/100 (B-).
LULU
Strong Buy65
out of 100
Grade: B-
RENT
Avoid30
out of 100
Grade: F
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
+70.5%
Fair Value
$19.58
Current Price
$4.81
$14.77 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%
Attractively priced relative to earnings
Conservative balance sheet, low leverage
15.4% revenue growth
Areas to Watch
0.8% revenue growth
Weak financial health signals
Earnings declined 18.5%
0.0% earnings growth
Smaller company, higher risk/reward
3.4% margin — thin
ROE of -7.8% — below average capital efficiency
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 : RENT
The strongest argument for RENT centers on P/E Ratio, Debt/Equity, Revenue Growth. Revenue growth of 15.4% demonstrates continued momentum.
Bear Case : LULU
The primary concerns for LULU are Revenue Growth, Piotroski F-Score, EPS Growth.
Bear Case : RENT
The primary concerns for RENT are EPS Growth, Market Cap, Profit Margin. Thin 3.4% margins leave little buffer for downturns.
Key Dynamics to Monitor
LULU profiles as a value stock while RENT is a growth play — different risk/reward profiles.
RENT carries more volatility with a beta of 1.29 — expect wider price swings.
RENT is growing revenue faster at 15.4% — sustainability is the question.
LULU generates stronger free cash flow (960M), providing more financial flexibility.
Bottom Line
LULU scores higher overall (65/100 vs 30/100). RENT offers better value entry with a 70.5% margin of safety. Both earn "Strong Buy" and "Avoid" 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 →Rent the Runway Inc
CONSUMER CYCLICAL · APPAREL RETAIL · USA
Rent the Runway, Inc. rents women's designer dresses, clothing and accessories through its stores and online platform.
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