LULU vs QCOM: Which Is the Better Buy?
Side-by-side comparison of Lululemon Athletica Inc. and QUALCOMM Incorporated — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-09-26.
Lululemon Athletica Inc. · Consumer Cyclical
$98.06
+1.5% upside to fair value
Low Conviction
Grade C
VS
QUALCOMM Incorporated · Technology
$201.97
-21.1% upside to fair value
Med Conviction
Grade D
High Quality
QuantHub Verdict
LULU has more upside to fair value
(+1.5%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
LULU |
QCOM |
| Current Price |
$98.06 |
$201.97 |
| Fair Value Estimate |
$99.50 |
$159.42 |
| Upside to Fair Value |
+1.5%
|
-21.1%
|
| Market Cap |
$11.1B |
$212.1B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
4.6x
|
16.5x
|
| Price / Sales |
1.0x
|
4.8x
|
| Price / FCF |
8.2x
|
20.5x
|
| Revenue Growth YoY |
-4.3%
|
-4.0%
|
| Gross Margin |
56.1%
|
54.2%
|
| Operating Margin |
17.8%
|
23.2%
|
| Return on Equity |
29.7%
|
37.3%
|
| Dividend Yield |
0% |
1.79% |
| FCF Yield |
12.24%
|
4.88%
|
| 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…
Qualcomm develops foundational wireless technologies and monetizes them through two main engines: QCT, which supplies Snapdragon application processors and modems, and QTL, which licenses a standards-essential patent portfolio covering CDMA2000, WCDMA, LTE and 5G. The licensing arm and the company's entrenched position in premium Android handsets give it a genuinely high-quality business, evidenc…
Accumulation Zones
| Metric |
LULU |
QCOM |
| Zone Low |
$74.62 |
$119.56 |
| Zone High |
$84.58 |
$135.51 |
| In Buy Zone? |
No
|
No
|