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 2026-05-04.
Lululemon Athletica Inc. · Consumer Cyclical
$128.98
+307.7% upside to fair value
Grade C
VS
Morgan Stanley · Financial Services
$189.30
-30.5% upside to fair value
Grade C
High Quality
QuantHub Verdict
LULU has more upside to fair value
(+307.7%).
LULU trades at a lower forward P/E
(9.7x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
LULU |
MS |
| Current Price |
$128.98 |
$189.30 |
| Fair Value Estimate |
$525.85 |
$131.49 |
| Upside to Fair Value |
+307.7%
|
-30.5%
|
| Market Cap |
$15.1B |
$300.6B |
| Forward P/E |
9.7x
|
16.4x
|
| EV / EBITDA |
5.6x
|
24.4x
|
| Price / Sales |
1.4x
|
2.5x
|
| Price / FCF |
16.4x
|
-16.8x
|
| Revenue Growth YoY |
+0.8%
|
+18.8%
|
| Gross Margin |
56.6%
|
58.0%
|
| Operating Margin |
19.8%
|
19.5%
|
| Return on Equity |
34.8%
|
16.7%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
6.09%
|
—
|
| Analyst Consensus |
Hold
|
Hold
|
Investment Thesis
Lululemon Athletica Inc. is a premium athletic apparel retailer operating primarily in the consumer cyclical sector with a focus on apparel retail. The company has a strong brand and historically high profitability with a gross margin of 56.6% and ROE of 34.8%, but it faces significant near-term challenges including earnings pressure with a 21.6% decline in earnings in the most recent quarter and…
Morgan Stanley is a leading global financial services firm operating in Institutional Securities, Wealth Management, and Investment Management. The company benefits from a durable competitive moat supported by its systemically important status, diversified revenue streams, and strong management with a 36-year veteran CEO. Despite solid fundamentals including 14.2% revenue growth in 2025 and 16.7%…
Accumulation Zones
| Metric |
LULU |
MS |
| Zone Low |
$394.39 |
$98.62 |
| Zone High |
$446.97 |
$111.77 |
| In Buy Zone? |
Yes
|
No
|