LULU vs NFLX: Which Is the Better Buy?
Side-by-side comparison of Lululemon Athletica Inc. and Netflix, Inc. — 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
Netflix, Inc. · Communication Services
$91.02
+95.7% upside to fair value
Grade B
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 |
NFLX |
| Current Price |
$128.98 |
$91.02 |
| Fair Value Estimate |
$525.85 |
$178.10 |
| Upside to Fair Value |
+307.7%
|
+95.7%
|
| Market Cap |
$15.1B |
$383.3B |
| Forward P/E |
9.7x
|
28.7x
|
| EV / EBITDA |
5.6x
|
11.4x
|
| Price / Sales |
1.4x
|
8.2x
|
| Price / FCF |
16.4x
|
32.2x
|
| Revenue Growth YoY |
+0.8%
|
+16.2%
|
| Gross Margin |
56.6%
|
49.0%
|
| Operating Margin |
19.8%
|
29.7%
|
| Return on Equity |
34.8%
|
49.2%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
6.09%
|
3.1%
|
| Analyst Consensus |
Hold
|
Strong Buy
|
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…
Netflix, Inc. operates a leading global streaming entertainment service with a dominant streaming segment accounting for nearly 100% of its revenue. The company benefits from a high-quality business model characterized by strong revenue growth of 16.2% and earnings growth of 82.8% in the most recent quarter, a robust 49.2% return on equity, and healthy margins with a 29.7% operating margin and 28…
Accumulation Zones
| Metric |
LULU |
NFLX |
| Zone Low |
$394.39 |
$133.57 |
| Zone High |
$446.97 |
$151.38 |
| In Buy Zone? |
Yes
|
Yes
|