HON vs LULU: Which Is the Better Buy?
Side-by-side comparison of Honeywell International Inc. and Lululemon Athletica Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-07-17.
Honeywell International Inc. · Industrials
$222.25
-5.5% upside to fair value
Grade D
High Quality
VS
Lululemon Athletica Inc. · Consumer Cyclical
$116.33
+45.0% upside to fair value
Med Conviction
Grade B-
QuantHub Verdict
LULU has more upside to fair value
(+45.0%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
HON |
LULU |
| Current Price |
$222.25 |
$116.33 |
| Fair Value Estimate |
$210.05 |
$168.68 |
| Upside to Fair Value |
-5.5%
|
+45.0%
|
| Market Cap |
$70.4B |
$13.2B |
| Forward P/E |
15.7x
|
—
|
| EV / EBITDA |
13.1x
|
5.3x
|
| Price / Sales |
1.9x
|
1.2x
|
| Price / FCF |
17.1x
|
10.3x
|
| Revenue Growth YoY |
-6.9%
|
+4.3%
|
| Gross Margin |
36.9%
|
55.7%
|
| Operating Margin |
14.9%
|
18.2%
|
| Return on Equity |
23.6%
|
31.3%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
5.84%
|
9.69%
|
| Analyst Consensus |
Strong Buy
|
Hold
|
Investment Thesis
Honeywell International Inc. operates as a diversified industrial conglomerate with a strong presence in multiple sectors including aerospace, building technologies, and performance materials. The company demonstrates high business quality with a durable competitive moat supported by strong margins, a 23.6% return on equity, and solid free cash flow generation of $16.78 per share. However, recent…
Lululemon Athletica is a premium athletic-apparel retailer whose technical-product innovation, powerful brand, direct-to-consumer retail and e-commerce model, and community-led marketing have historically supported high returns, including a 31.3% ROE, 55.7% gross margin, 18.2% operating margin, and 13.0% net margin. The investment case is now a turnaround rather than a clean compounding story: in…
Accumulation Zones
| Metric |
HON |
LULU |
| Zone Low |
$157.54 |
$126.51 |
| Zone High |
$178.54 |
$143.38 |
| In Buy Zone? |
No
|
Yes
|