Levi Strauss & Co. (NYSE:LEVI – Get Free Report) and lululemon athletica (NASDAQ:LULU – Get Free Report) are both consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, profitability, dividends, valuation, earnings, risk and analyst recommendations.
Insider and Institutional Ownership
69.1% of Levi Strauss & Co. shares are owned by institutional investors. Comparatively, 85.2% of lululemon athletica shares are owned by institutional investors. 1.1% of Levi Strauss & Co. shares are owned by insiders. Comparatively, 0.5% of lululemon athletica shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares Levi Strauss & Co. and lululemon athletica’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Levi Strauss & Co. | 8.83% | 27.40% | 9.31% |
| lululemon athletica | 12.78% | 27.69% | 15.81% |
Valuation and Earnings
This table compares Levi Strauss & Co. and lululemon athletica”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Levi Strauss & Co. | $6.28 billion | 1.40 | $578.10 million | $1.50 | 15.26 |
| lululemon athletica | $11.10 billion | 1.16 | $1.58 billion | $12.21 | 9.07 |
lululemon athletica has higher revenue and earnings than Levi Strauss & Co.. lululemon athletica is trading at a lower price-to-earnings ratio than Levi Strauss & Co., indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Levi Strauss & Co. has a beta of 1.3, suggesting that its share price is 30% more volatile than the S&P 500. Comparatively, lululemon athletica has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current recommendations for Levi Strauss & Co. and lululemon athletica, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Levi Strauss & Co. | 0 | 3 | 10 | 1 | 2.86 |
| lululemon athletica | 7 | 22 | 0 | 1 | 1.83 |
Levi Strauss & Co. currently has a consensus price target of $26.92, suggesting a potential upside of 17.60%. lululemon athletica has a consensus price target of $105.26, suggesting a potential downside of 4.99%. Given Levi Strauss & Co.’s stronger consensus rating and higher probable upside, research analysts plainly believe Levi Strauss & Co. is more favorable than lululemon athletica.
About Levi Strauss & Co.
Levi Strauss & Co. engages in the design, marketing, and sale of apparel products. The company offers jeans, casual and dress pants, tops, shorts, skirts, jackets, footwear, and related accessories. It operates through the following geographical segments: Americas, Europe, and Asia. The company was founded by Levi Strauss in 1853 and is headquartered in San Francisco, CA.
About lululemon athletica
Lululemon Athletica Inc., together with its subsidiaries, designs, distributes, and retails athletic apparel, footwear, and accessories under the lululemon brand for women and men. It offers pants, shorts, tops, and jackets for healthy lifestyle, such as yoga, running, training, and other activities. It also provides fitness-inspired accessories. The company sells its products through a chain of company-operated stores; outlets; interactive workout platform; yoga and fitness studios, university campus retailers, and other partners; license and supply arrangements; and temporary locations, as well as through mobile apps and lululemon.com e-commerce website. It has operations in the United States, Canada, Mainland China, Australia, South Korea, Hong Kong, Japan, New Zealand, Taiwan, Singapore, Malaysia, Macau, Thailand, the Asia Pacific, the United Kingdom, Germany, France, Ireland, Spain, the Netherlands, Sweden, Norway, Switzerland, Europe, the Middle East, and Africa. Lululemon Athletica Inc. was founded in 1998 and is based in Vancouver, Canada.
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