Canada Goose vs Lululemon Athletica Which Is a Smarter Choice?

Canada Goose and Lululemon Athletica are both prominent Canadian apparel companies that have gained significant popularity in the global market. While Canada Goose is known for its high-quality and luxurious outerwear, Lululemon Athletica has established itself as a leading athleisure brand. Investors may be interested in comparing these two stocks as they both cater to different segments of the retail market. Understanding the performance and potential growth of Canada Goose and Lululemon Athletica can provide valuable insights for investment decisions.

Canada Goose or Lululemon Athletica?

When comparing Canada Goose 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 Canada Goose 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. Canada Goose 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. Canada Goose 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 Canada Goose P/E ratio at 20.47 and Lululemon Athletica's P/E ratio at 28.25. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Canada Goose P/B ratio is 3.64 while Lululemon Athletica's P/B ratio is 11.28.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Canada Goose has seen a 5-year revenue growth of 0.75%, while Lululemon Athletica's is 2.08%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Canada Goose's ROE at 16.77% and Lululemon Athletica's ROE at 41.25%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $9.50 for Canada Goose and $377.00 for Lululemon Athletica. Over the past year, Canada Goose's prices ranged from $9.23 to $14.75, with a yearly change of 59.82%. 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.