LULU vs PG: Which Is the Better Buy?

Side-by-side comparison of Lululemon Athletica Inc. and The Procter & Gamble Company — 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
The Procter & Gamble Company · Consumer Defensive
$143.45
+13.8% 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 PG
Current Price $128.98 $143.45
Fair Value Estimate $525.85 $163.27
Upside to Fair Value +307.7% +13.8%
Market Cap $15.1B $334.0B
Forward P/E 9.7x 20.8x
EV / EBITDA 5.6x 15.4x
Price / Sales 1.4x 3.9x
Price / FCF 16.4x 22.2x
Revenue Growth YoY +0.8% +7.4%
Gross Margin 56.6% 50.3%
Operating Margin 19.8% 23.2%
Return on Equity 34.8% 31.3%
Dividend Yield 0% 0%
FCF Yield 6.09% 4.5%
Analyst Consensus Hold Buy
Investment Thesis
LULU — Lululemon Athletica Inc.
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…
PG — The Procter & Gamble Company
The Procter & Gamble Company is a leading consumer defensive firm specializing in household and personal products with a diversified portfolio across fabric and home care, baby and family care, beauty, health care, and grooming segments. The business quality is high, supported by durable brands, strong margins with a 50.3% gross margin and 19.2% net margin, and consistent earnings growth evidence…
Accumulation Zones
Metric LULU PG
Zone Low $394.39 $122.45
Zone High $446.97 $138.78
In Buy Zone? Yes No
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