LULU vs WMT: Which Is the Better Buy?
Side-by-side comparison of Lululemon Athletica Inc. and Walmart Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-06-20.
Lululemon Athletica Inc. · Consumer Cyclical
$111.77
+45.0% upside to fair value
Grade B
High Quality
VS
Walmart Inc. · Consumer Defensive
$117.18
-39.6% upside to fair value
Grade C
High Quality
QuantHub Verdict
LULU has more upside to fair value
(+45.0%).
LULU trades at a lower forward P/E
(9.1x).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
LULU |
WMT |
| Current Price |
$111.77 |
$117.18 |
| Fair Value Estimate |
$162.07 |
$70.81 |
| Upside to Fair Value |
+45.0%
|
-39.6%
|
| Market Cap |
$12.7B |
$932.5B |
| Forward P/E |
9.1x
|
41.1x
|
| EV / EBITDA |
5.1x
|
20.7x
|
| Price / Sales |
1.1x
|
1.3x
|
| Price / FCF |
9.9x
|
74.3x
|
| Revenue Growth YoY |
+4.3%
|
+7.3%
|
| Gross Margin |
55.7%
|
25.0%
|
| Operating Margin |
18.2%
|
4.2%
|
| Return on Equity |
31.3%
|
24.3%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
10.08%
|
1.35%
|
| Analyst Consensus |
Hold
|
Strong Buy
|
Investment Thesis
Lululemon Athletica Inc. operates in the premium athletic apparel retail sector, leveraging a strong brand and a durable competitive moat driven by product innovation and global expansion, particularly in China. The company has demonstrated solid capital allocation with organic growth and buybacks, though it faces near-term earnings pressure with a 38% decline in quarterly earnings year-over-year…
Walmart Inc. operates as a leading discount retailer with a strong competitive moat built on scale, cost leadership, and advanced logistics and technology infrastructure. The company benefits from a diversified revenue base with Walmart U.S. contributing 69%, International 18%, and Sam's Club 13%. Despite solid revenue growth of 7.3% and earnings growth of 25.9% in the most recent quarter, the st…
Accumulation Zones
| Metric |
LULU |
WMT |
| Zone Low |
$121.55 |
$53.11 |
| Zone High |
$137.76 |
$60.19 |
| In Buy Zone? |
Yes
|
No
|