LULU vs MS: Which Is the Better Buy?
Side-by-side comparison of Lululemon Athletica Inc. and Morgan Stanley — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-09-21.
Lululemon Athletica Inc. · Consumer Cyclical
$98.06
+1.5% upside to fair value
Low Conviction
Grade C
VS
Morgan Stanley · Financial Services
$206.27
+15.9% upside to fair value
Med Conviction
Grade C
QuantHub Verdict
MS has more upside to fair value
(+15.9%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
LULU |
MS |
| Current Price |
$98.06 |
$206.27 |
| Fair Value Estimate |
$99.50 |
$239.00 |
| Upside to Fair Value |
+1.5%
|
+15.9%
|
| Market Cap |
$11.1B |
$325.4B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
4.6x
|
23.5x
|
| Price / Sales |
1.0x
|
2.6x
|
| Price / FCF |
8.2x
|
—
|
| Revenue Growth YoY |
-4.3%
|
+22.4%
|
| Gross Margin |
56.1%
|
59.7%
|
| Operating Margin |
17.8%
|
20.7%
|
| Return on Equity |
29.7%
|
18.1%
|
| Dividend Yield |
0% |
2.01% |
| FCF Yield |
12.24%
|
—
|
| Analyst Consensus |
Sell
|
Hold
|
Investment Thesis
Lululemon Athletica designs and retails premium athletic apparel and accessories through company-owned stores and direct-to-consumer channels, with roughly 39,000 employees and a brand built on technical fabrics and community-led fitness positioning. The business still earns high returns on equity of 29.7% and generates $12.00 of free cash flow per share on $97.70 of revenue per share, with TTM g…
Morgan Stanley is a diversified capital-markets and wealth-management franchise spanning institutional securities, advisor-led and self-directed wealth, workplace services, and investment management. Business quality is solid but inherently cyclical: it combines $8.084 trillion of wealth client assets and $2.004 trillion of investment-management AUM/AUS with a strengthening 15.5% institutional pe…
Accumulation Zones
| Metric |
LULU |
MS |
| Zone Low |
$74.62 |
$179.25 |
| Zone High |
$84.58 |
$203.15 |
| In Buy Zone? |
No
|
No
|