Aritzia vs Lululemon Athletica Which Is More Reliable?

Aritzia and Lululemon Athletica are two popular companies in the retail industry known for their high-quality clothing geared towards active individuals. Both companies have seen steady growth in recent years, with Aritzia focusing on trendy, fashion-forward designs while Lululemon is known for its high-performance activewear. Investors may be interested in comparing the stocks of these two companies to determine which one offers the best investment opportunity in terms of potential growth, financial stability, and market performance.

Aritzia or Lululemon Athletica?

When comparing Aritzia and Lululemon Athletica, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Aritzia and Lululemon Athletica.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Aritzia has a dividend yield of -%, while Lululemon Athletica has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Aritzia reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Lululemon Athletica reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Aritzia P/E ratio at 50.12 and Lululemon Athletica's P/E ratio at 24.33. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Aritzia P/B ratio is 5.82 while Lululemon Athletica's P/B ratio is 9.85.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Aritzia has seen a 5-year revenue growth of 2.12%, while Lululemon Athletica's is 2.08%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Aritzia's ROE at 12.32% and Lululemon Athletica's ROE at 40.79%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $32.48 for Aritzia and $308.62 for Lululemon Athletica. Over the past year, Aritzia's prices ranged from $30.00 to $38.16, with a yearly change of 27.20%. Lululemon Athletica's prices fluctuated between $226.01 and $516.39, with a yearly change of 128.48%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.