Lululemon Athletica vs Aritzia Which Is Stronger?

Lululemon Athletica and Aritzia are two prominent Canadian companies in the retail sector, each specializing in high-quality athleisure and fashion products, respectively. Both companies have seen significant growth in their stocks in recent years, with Lululemon maintaining a strong presence in the athletic wear market and Aritzia gaining popularity for its trendy clothing offerings. Investors are often intrigued by the performance of these two stocks, as they both reflect consumer trends and preferences in the retail industry.

Lululemon Athletica or Aritzia?

When comparing Lululemon Athletica and Aritzia, 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 Lululemon Athletica and Aritzia.

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. Lululemon Athletica has a dividend yield of -%, while Aritzia has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Lululemon Athletica reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Aritzia 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 Lululemon Athletica P/E ratio at 24.33 and Aritzia's P/E ratio at 50.12. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Lululemon Athletica P/B ratio is 9.85 while Aritzia's P/B ratio is 5.82.

Growth Investors:

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

Retail Investors:

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