LULU vs SBUX: Which Is the Better Buy?
Side-by-side comparison of Lululemon Athletica Inc. and Starbucks Corporation — 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
Starbucks Corporation · Consumer Cyclical
$96.60
+19.0% upside to fair value
Med Conviction
Grade B+
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 |
SBUX |
| Current Price |
$128.98 |
$96.60 |
| Fair Value Estimate |
$525.85 |
$115.00 |
| Upside to Fair Value |
+307.7%
|
+19.0%
|
| Market Cap |
$15.1B |
$110.1B |
| Forward P/E |
9.7x
|
42.2x
|
| EV / EBITDA |
5.6x
|
22.5x
|
| Price / Sales |
1.4x
|
3.0x
|
| Price / FCF |
16.4x
|
45.1x
|
| Revenue Growth YoY |
+0.8%
|
+2.8%
|
| Gross Margin |
56.6%
|
24.2%
|
| Operating Margin |
19.8%
|
9.6%
|
| Return on Equity |
34.8%
|
-22.9%
|
| Dividend Yield |
0% |
2.55% |
| FCF Yield |
6.09%
|
2.2%
|
| Analyst Consensus |
Hold
|
Hold
|
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…
Starbucks is the world's largest specialty coffee retailer with over 39,000 stores across 86 markets, generating $37.2B in annual revenue. Under CEO Brian Niccol, now 19 months into his tenure after joining from Chipotle in September 2024, the company is executing the Back to Starbucks operational turnaround focused on service speed, menu simplification, and store experience reinvention. At P/S 2…
Accumulation Zones
| Metric |
LULU |
SBUX |
| Zone Low |
$394.39 |
$88.00 |
| Zone High |
$446.97 |
$98.00 |
| In Buy Zone? |
Yes
|
Yes
|