LULU vs NKE: Which Is the Better Buy?
Side-by-side comparison of Lululemon Athletica Inc. and NIKE, Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-07-17.
Lululemon Athletica Inc. · Consumer Cyclical
$116.33
+45.0% upside to fair value
Med Conviction
Grade B-
VS
NIKE, Inc. · Consumer Cyclical
$41.05
+45.0% upside to fair value
Grade B
High Quality
Valuation & Fundamentals
| Metric |
LULU |
NKE |
| Current Price |
$116.33 |
$41.05 |
| Fair Value Estimate |
$168.68 |
$59.52 |
| Upside to Fair Value |
+45.0%
|
+45.0%
|
| Market Cap |
$13.2B |
$60.7B |
| Forward P/E |
—
|
19.6x
|
| EV / EBITDA |
5.3x
|
14.2x
|
| Price / Sales |
1.2x
|
1.3x
|
| Price / FCF |
10.3x
|
57.9x
|
| Revenue Growth YoY |
+4.3%
|
-1.1%
|
| Gross Margin |
55.7%
|
42.9%
|
| Operating Margin |
18.2%
|
8.2%
|
| Return on Equity |
31.3%
|
22.0%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
9.69%
|
1.73%
|
| Analyst Consensus |
Hold
|
Hold
|
Investment Thesis
Lululemon Athletica is a premium athletic-apparel retailer whose technical-product innovation, powerful brand, direct-to-consumer retail and e-commerce model, and community-led marketing have historically supported high returns, including a 31.3% ROE, 55.7% gross margin, 18.2% operating margin, and 13.0% net margin. The investment case is now a turnaround rather than a clean compounding story: in…
NIKE, Inc. is a leading global athletic footwear and apparel company with a durable competitive moat supported by its strong brand, scale, and global distribution infrastructure. The company is currently led by CEO Elliott Hill, a seasoned Nike veteran who returned in October 2024 to navigate intensifying competition and channel complexity. Despite its market leadership and solid profitability me…
Accumulation Zones
| Metric |
LULU |
NKE |
| Zone Low |
$126.51 |
$44.64 |
| Zone High |
$143.38 |
$50.59 |
| In Buy Zone? |
Yes
|
Yes
|