Lululemon Athletica Inc. (LULU)vsRoss Stores Inc (ROST)
LULU
Lululemon Athletica Inc.
$114.23
-8.56%
CONSUMER CYCLICAL · Cap: $13.49B
ROST
Ross Stores Inc
$230.37
-1.15%
CONSUMER CYCLICAL · Cap: $75.95B
Smart Verdict
WallStSmart Research — data-driven comparison
Ross Stores Inc generates 112% more annual revenue ($23.78B vs $11.20B). LULU leads profitability with a 13.0% profit margin vs 9.7%. LULU appears more attractively valued with a PEG of 0.58. ROST earns a higher WallStSmart Score of 64/100 (C+).
LULU
Buy64
out of 100
Grade: C+
ROST
Buy64
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+70.6%
Fair Value
$598.31
Current Price
$114.23
$484.08 discount
Margin of Safety
-8.4%
Fair Value
$177.67
Current Price
$230.37
$52.70 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Every $100 of equity generates 30 in profit
Safe zone — low bankruptcy risk
Growing faster than its price suggests
Reasonable price relative to book value
Every $100 of equity generates 37 in profit
Safe zone — low bankruptcy risk
Large-cap with strong market position
Revenue surging 20.6% year-over-year
Earnings expanding 37.4% YoY
Areas to Watch
4.3% revenue growth
Weak financial health signals
Earnings declined 35.0%
Premium valuation, high expectations priced in
Trading at 11.7x book value
Expensive relative to growth rate
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 0.58 suggests the stock is reasonably priced for its growth.
Bull Case : ROST
The strongest argument for ROST centers on Return on Equity, Altman Z-Score, Market Cap. Revenue growth of 20.6% demonstrates continued momentum.
Bear Case : LULU
The primary concerns for LULU are Revenue Growth, Piotroski F-Score, EPS Growth.
Bear Case : ROST
The primary concerns for ROST are P/E Ratio, Price/Book, PEG Ratio.
Key Dynamics to Monitor
LULU profiles as a value stock while ROST is a growth play — different risk/reward profiles.
ROST carries more volatility with a beta of 0.87 — expect wider price swings.
ROST is growing revenue faster at 20.6% — sustainability is the question.
ROST generates stronger free cash flow (627M), providing more financial flexibility.
Bottom Line
LULU scores higher overall (64/100 vs 64/100). Both earn "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 →Ross Stores Inc
CONSUMER CYCLICAL · APPAREL RETAIL · USA
Ross Stores, Inc., operating under the brand name Ross Dress for Less, is an American chain of discount department stores headquartered in Dublin, California.
Visit Website →Compare with Other APPAREL RETAIL Stocks
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