COST vs LULU: Which Is the Better Buy?
Side-by-side comparison of Costco Wholesale Corporation and Lululemon Athletica Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-06-20.
Costco Wholesale Corporation · Consumer Defensive
$951.45
-1.2% upside to fair value
Grade C
High Quality
VS
Lululemon Athletica Inc. · Consumer Cyclical
$111.77
+45.0% upside to fair value
Grade B
High Quality
QuantHub Verdict
LULU has more upside to fair value
(+45.0%).
LULU trades at a lower forward P/E
(9.1x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
COST |
LULU |
| Current Price |
$951.45 |
$111.77 |
| Fair Value Estimate |
$940.44 |
$162.07 |
| Upside to Fair Value |
-1.2%
|
+45.0%
|
| Market Cap |
$421.9B |
$12.7B |
| Forward P/E |
47.8x
|
9.1x
|
| EV / EBITDA |
28.4x
|
5.1x
|
| Price / Sales |
1.4x
|
1.1x
|
| Price / FCF |
47.9x
|
9.9x
|
| Revenue Growth YoY |
+11.6%
|
+4.3%
|
| Gross Margin |
12.9%
|
55.7%
|
| Operating Margin |
3.8%
|
18.2%
|
| Return on Equity |
28.3%
|
31.3%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
2.09%
|
10.08%
|
| Analyst Consensus |
Buy
|
Hold
|
Investment Thesis
Costco Wholesale Corporation operates a membership-based warehouse club model primarily focused on merchandise sales, which constitute about 98% of its revenue, with membership fees contributing roughly 2%. The company benefits from a durable competitive moat driven by deep operational expertise, a long-tenured leadership culture, and a stable CEO succession. Despite strong revenue growth of 11.6…
Lululemon Athletica Inc. operates in the premium athletic apparel retail sector, leveraging a strong brand and a durable competitive moat driven by product innovation and global expansion, particularly in China. The company has demonstrated solid capital allocation with organic growth and buybacks, though it faces near-term earnings pressure with a 38% decline in quarterly earnings year-over-year…
Accumulation Zones
| Metric |
COST |
LULU |
| Zone Low |
$705.33 |
$121.55 |
| Zone High |
$799.37 |
$137.76 |
| In Buy Zone? |
No
|
Yes
|