LULU vs UNH: Which Is the Better Buy?
Side-by-side comparison of Lululemon Athletica Inc. and UnitedHealth Group Incorporated — 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
UnitedHealth Group Incorporated · Healthcare
$375.21
+28.2% upside to fair value
Med Conviction
Grade B
High Quality
QuantHub Verdict
UNH has more upside to fair value
(+28.2%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
LULU |
UNH |
| Current Price |
$98.06 |
$375.21 |
| Fair Value Estimate |
$99.50 |
$481.06 |
| Upside to Fair Value |
+1.5%
|
+28.2%
|
| Market Cap |
$11.1B |
$340.7B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
4.6x
|
15.0x
|
| Price / Sales |
1.0x
|
0.8x
|
| Price / FCF |
8.2x
|
14.4x
|
| Revenue Growth YoY |
-4.3%
|
+0.4%
|
| Gross Margin |
56.1%
|
22.5%
|
| Operating Margin |
17.8%
|
4.8%
|
| Return on Equity |
29.7%
|
14.6%
|
| Dividend Yield |
0% |
2.41% |
| FCF Yield |
12.24%
|
6.95%
|
| Analyst Consensus |
Sell
|
Strong Buy
|
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…
UnitedHealth Group is the largest diversified healthcare enterprise in the United States, operating UnitedHealthcare insurance plans alongside Optum Health, Optum Insight, and Optum Rx, with 390,000 employees and a market capitalization of $340.74 billion. The business quality is high: a 14.6% return on equity, $26.07 in free cash flow per share, and a P/FCF of 14.39 demonstrate strong cash gener…
Accumulation Zones
| Metric |
LULU |
UNH |
| Zone Low |
$74.62 |
$360.80 |
| Zone High |
$84.58 |
$408.90 |
| In Buy Zone? |
No
|
Yes
|