LULU vs UPS: Which Is the Better Buy?
Side-by-side comparison of Lululemon Athletica Inc. and United Parcel Service, Inc. — 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
United Parcel Service, Inc. · Industrials
$99.02
+21.1% upside to fair value
Med Conviction
Grade B
QuantHub Verdict
UPS has more upside to fair value
(+21.1%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
LULU |
UPS |
| Current Price |
$98.06 |
$99.02 |
| Fair Value Estimate |
$99.50 |
$119.92 |
| Upside to Fair Value |
+1.5%
|
+21.1%
|
| Market Cap |
$11.1B |
$84.1B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
4.6x
|
10.2x
|
| Price / Sales |
1.0x
|
0.9x
|
| Price / FCF |
8.2x
|
15.3x
|
| Revenue Growth YoY |
-4.3%
|
+7.6%
|
| Gross Margin |
56.1%
|
16.6%
|
| Operating Margin |
17.8%
|
7.3%
|
| Return on Equity |
29.7%
|
29.1%
|
| Dividend Yield |
0% |
6.62% |
| FCF Yield |
12.24%
|
6.52%
|
| 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…
United Parcel Service is the world's largest integrated package delivery and logistics network, operating U.S. Domestic Package and International Package segments with roughly 460,000 employees and a 119-year operating history. The business quality is medium: the global air-and-ground network, brand, and scale are genuine assets, but the company is exposed to commoditized freight, Amazon volume c…
Accumulation Zones
| Metric |
LULU |
UPS |
| Zone Low |
$74.62 |
$89.94 |
| Zone High |
$84.58 |
$101.93 |
| In Buy Zone? |
No
|
Yes
|