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 2026-05-04.
Lululemon Athletica Inc. · Consumer Cyclical
$128.98
+307.7% upside to fair value
Grade C
VS
United Parcel Service, Inc. · Industrials
$101.69
+27.8% 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 |
UPS |
| Current Price |
$128.98 |
$101.69 |
| Fair Value Estimate |
$525.85 |
$130.00 |
| Upside to Fair Value |
+307.7%
|
+27.8%
|
| Market Cap |
$15.1B |
$86.4B |
| Forward P/E |
9.7x
|
15.1x
|
| EV / EBITDA |
5.6x
|
9.1x
|
| Price / Sales |
1.4x
|
0.9x
|
| Price / FCF |
16.4x
|
17.7x
|
| Revenue Growth YoY |
+0.8%
|
-2.5%
|
| Gross Margin |
56.6%
|
18.5%
|
| Operating Margin |
19.8%
|
9.56%
|
| Return on Equity |
34.8%
|
34.3%
|
| Dividend Yield |
0% |
6.41% |
| FCF Yield |
6.09%
|
5.66%
|
| 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…
UPS is the world's largest integrated logistics network with 241,250 employees, operations in 200-plus countries, and 20.8 million packages per day, now in the decisive phase of its most consequential restructuring in 118 years. By deliberately cutting Amazon volume by more than 50 percent (Amazon was 10.6 percent of 2025 revenue), closing 22 to 24 facilities, and eliminating 30,000 positions, ma…
Accumulation Zones
| Metric |
LULU |
UPS |
| Zone Low |
$394.39 |
$95.00 |
| Zone High |
$446.97 |
$112.00 |
| In Buy Zone? |
Yes
|
Yes
|