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 2026-06-20.
Lululemon Athletica Inc. · Consumer Cyclical
$111.77
+45.0% upside to fair value
Grade B
High Quality
VS
Morgan Stanley · Financial Services
$223.17
-1802.9% upside to fair value
Grade D
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 |
LULU |
MS |
| Current Price |
$111.77 |
$223.17 |
| Fair Value Estimate |
$162.07 |
$-3,800.42 |
| Upside to Fair Value |
+45.0%
|
-1802.9%
|
| Market Cap |
$12.7B |
$352.0B |
| Forward P/E |
9.1x
|
20.1x
|
| EV / EBITDA |
5.1x
|
21.9x
|
| Price / Sales |
1.1x
|
2.9x
|
| Price / FCF |
9.9x
|
-334.6x
|
| Revenue Growth YoY |
+4.3%
|
+18.8%
|
| Gross Margin |
55.7%
|
58.0%
|
| Operating Margin |
18.2%
|
19.5%
|
| Return on Equity |
31.3%
|
16.4%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
10.08%
|
—
|
| Analyst Consensus |
Hold
|
Hold
|
Investment Thesis
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…
Morgan Stanley is a leading global financial services firm with a strong focus on wealth management and institutional securities, generating $70.6 billion in net revenues in 2025. The company benefits from a durable competitive moat driven by its fee-based wealth franchise, strong profitability with a 15.1% net margin, and steady capital returns. However, the stock is significantly overvalued, tr…
Accumulation Zones
| Metric |
LULU |
MS |
| Zone Low |
$121.55 |
$-2,850.32 |
| Zone High |
$137.76 |
$-3,230.36 |
| In Buy Zone? |
Yes
|
No
|