LULU vs PYPL: Which Is the Better Buy?
Side-by-side comparison of Lululemon Athletica Inc. and PayPal Holdings, Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-05-05.
Lululemon Athletica Inc. · Consumer Cyclical
$128.98
+307.7% upside to fair value
Grade C
VS
PayPal Holdings, Inc. · Financial Services
$50.39
+110.0% upside to fair value
Grade B
QuantHub Verdict
LULU has more upside to fair value
(+307.7%).
PYPL trades at a lower forward P/E
(9.0x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
LULU |
PYPL |
| Current Price |
$128.98 |
$50.39 |
| Fair Value Estimate |
$525.85 |
$105.84 |
| Upside to Fair Value |
+307.7%
|
+110.0%
|
| Market Cap |
$15.1B |
$45.3B |
| Forward P/E |
9.7x
|
9.0x
|
| EV / EBITDA |
5.6x
|
6.1x
|
| Price / Sales |
1.4x
|
1.4x
|
| Price / FCF |
16.4x
|
8.2x
|
| Revenue Growth YoY |
+0.8%
|
+3.7%
|
| Gross Margin |
56.6%
|
46.6%
|
| Operating Margin |
19.8%
|
18.3%
|
| Return on Equity |
34.8%
|
25.9%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
6.09%
|
12.27%
|
| Analyst Consensus |
Hold
|
Sell
|
Investment Thesis
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…
PayPal Holdings, Inc. operates as a leading digital payments platform offering transaction processing and value-added financial services such as consumer credit and BNPL products. The business quality is medium due to a narrowing competitive moat amid increasing pressure from big tech competitors and slowing growth in its core branded checkout segment. The stock is currently mispriced and cheap, …
Accumulation Zones
| Metric |
LULU |
PYPL |
| Zone Low |
$394.39 |
$79.38 |
| Zone High |
$446.97 |
$89.96 |
| In Buy Zone? |
Yes
|
Yes
|