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 2026-06-20.
Lululemon Athletica Inc. · Consumer Cyclical
$111.77
+45.0% upside to fair value
Grade B
High Quality
VS
NIKE, Inc. · Consumer Cyclical
$45.20
+38.7% upside to fair value
Grade B
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 |
NKE |
| Current Price |
$111.77 |
$45.20 |
| Fair Value Estimate |
$162.07 |
$62.68 |
| Upside to Fair Value |
+45.0%
|
+38.7%
|
| Market Cap |
$12.7B |
$66.8B |
| Forward P/E |
9.1x
|
29.7x
|
| EV / EBITDA |
5.1x
|
19.4x
|
| Price / Sales |
1.1x
|
1.4x
|
| Price / FCF |
9.9x
|
63.8x
|
| Revenue Growth YoY |
+4.3%
|
+0.1%
|
| Gross Margin |
55.7%
|
40.8%
|
| Operating Margin |
18.2%
|
6.0%
|
| Return on Equity |
31.3%
|
16.4%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
10.08%
|
1.57%
|
| 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…
NIKE, Inc. is the leading global athletic footwear and apparel brand with a strong competitive moat driven by its iconic brand and extensive innovation capabilities. The company is currently facing earnings pressure with a 34.5% decline in earnings in the most recent quarter and a 10% revenue decline in fiscal 2025, reflecting challenges from tariff-related cost pressures, intense competition, an…
Accumulation Zones
| Metric |
LULU |
NKE |
| Zone Low |
$121.55 |
$47.01 |
| Zone High |
$137.76 |
$53.28 |
| In Buy Zone? |
Yes
|
Yes
|