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 2026-09-21.
Lululemon Athletica Inc. · Consumer Cyclical
$98.06
+1.5% upside to fair value
Low Conviction
Grade C
VS
Netflix, Inc. · Communication Services
$76.41
+44.0% upside to fair value
High Conviction
Grade A
High Quality
QuantHub Verdict
NFLX has more upside to fair value
(+44.0%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
LULU |
NFLX |
| Current Price |
$98.06 |
$76.41 |
| Fair Value Estimate |
$99.50 |
$110.00 |
| Upside to Fair Value |
+1.5%
|
+44.0%
|
| Market Cap |
$11.1B |
$318.2B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
4.6x
|
10.6x
|
| Price / Sales |
1.0x
|
6.6x
|
| Price / FCF |
8.2x
|
29.1x
|
| Revenue Growth YoY |
-4.3%
|
+13.4%
|
| Gross Margin |
56.1%
|
49.1%
|
| Operating Margin |
17.8%
|
29.7%
|
| Return on Equity |
29.7%
|
48.0%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
12.24%
|
3.44%
|
| Analyst Consensus |
Sell
|
Strong Buy
|
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…
Netflix is a global subscription and advertising-supported entertainment platform with a high-quality brand, content engine, recommendation technology and distribution scale, evidenced by more than 97 billion viewing hours in the first half of 2026 and an audience approaching one billion people. Fundamentals remain strong: revenue grew 13.4% year over year in the most recent quarter, TTM gross, o…
Accumulation Zones
| Metric |
LULU |
NFLX |
| Zone Low |
$74.62 |
$82.50 |
| Zone High |
$84.58 |
$93.50 |
| In Buy Zone? |
No
|
Yes
|