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 2026-09-21.
Lululemon Athletica Inc. · Consumer Cyclical
$98.06
+1.5% upside to fair value
Low Conviction
Grade C
VS
NIKE, Inc. · Consumer Cyclical
$35.78
+9.9% upside to fair value
Med Conviction
Grade C
QuantHub Verdict
NKE has more upside to fair value
(+9.9%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
LULU |
NKE |
| Current Price |
$98.06 |
$35.78 |
| Fair Value Estimate |
$99.50 |
$39.33 |
| Upside to Fair Value |
+1.5%
|
+9.9%
|
| Market Cap |
$11.1B |
$53.0B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
4.6x
|
12.0x
|
| Price / Sales |
1.0x
|
1.1x
|
| Price / FCF |
8.2x
|
24.3x
|
| Revenue Growth YoY |
-4.3%
|
-1.1%
|
| Gross Margin |
56.1%
|
42.9%
|
| Operating Margin |
17.8%
|
8.2%
|
| Return on Equity |
29.7%
|
22.0%
|
| Dividend Yield |
0% |
4.58% |
| FCF Yield |
12.24%
|
4.12%
|
| Analyst Consensus |
Sell
|
Hold
|
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…
NIKE designs, markets and distributes athletic footwear, apparel and equipment through the Nike, Jordan and Converse brands, supported by global athlete marketing, valuable intellectual property and a broad wholesale and owned-digital network. Business quality is medium: its brand moat and 22.0% ROE remain meaningful, but the moat is narrowing amid intense competition, weak direct sales and uneve…
Accumulation Zones
| Metric |
LULU |
NKE |
| Zone Low |
$74.62 |
$29.50 |
| Zone High |
$84.58 |
$33.43 |
| In Buy Zone? |
No
|
No
|