Lululemon Athletica Inc. (LULU)vsVictoria's Secret & Co (VSCO)
LULU
Lululemon Athletica Inc.
$158.72
-1.39%
CONSUMER CYCLICAL · Cap: $18.62B
VSCO
Victoria's Secret & Co
$44.56
+2.34%
CONSUMER CYCLICAL · Cap: $3.49B
Smart Verdict
WallStSmart Research — data-driven comparison
Lululemon Athletica Inc. generates 69% more annual revenue ($11.10B vs $6.55B). LULU leads profitability with a 14.2% profit margin vs 2.5%. LULU trades at a lower P/E of 12.0x. LULU earns a higher WallStSmart Score of 65/100 (B-).
LULU
Strong Buy65
out of 100
Grade: B-
VSCO
Hold49
out of 100
Grade: D+
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
-329.5%
Fair Value
$13.12
Current Price
$44.56
$31.44 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%
Every $100 of equity generates 24 in profit
Areas to Watch
0.8% revenue growth
Weak financial health signals
Earnings declined 18.5%
2.5% margin — thin
Earnings declined 5.7%
Elevated debt levels
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 : VSCO
The strongest argument for VSCO centers on Return on Equity.
Bear Case : LULU
The primary concerns for LULU are Revenue Growth, Piotroski F-Score, EPS Growth.
Bear Case : VSCO
The primary concerns for VSCO are Profit Margin, EPS Growth, Debt/Equity. Debt-to-equity of 7.25 is elevated, increasing financial risk. Thin 2.5% margins leave little buffer for downturns.
Key Dynamics to Monitor
VSCO carries more volatility with a beta of 2.27 — expect wider price swings.
VSCO is growing revenue faster at 7.7% — 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 49/100). Both earn "Strong Buy" and "Hold" 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 →Victoria's Secret & Co
CONSUMER CYCLICAL · APPAREL RETAIL · USA
Victoria's Secret & Co (VSCO) is a leading specialty retailer recognized for its iconic women's lingerie, apparel, and personal care products, marketed predominantly under its renowned Victoria's Secret and PINK brands. The company employs a robust omnichannel strategy to optimize customer experiences and engagement, leveraging both physical and digital platforms. As VSCO undergoes a strategic brand repositioning to resonate with evolving consumer preferences, it remains committed to sustainability initiatives and capitalizing on growth opportunities within the competitive retail landscape. Its forward-thinking approach positions the company favorably for long-term value creation.
Visit Website →Compare with Other APPAREL RETAIL Stocks
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