Lululemon Athletica (NASDAQ:LULU – Get Free Report) and Perfect Moment (NASDAQ:PMNT – Get Free Report) are both consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, earnings, risk, dividends, institutional ownership, analyst recommendations and profitability.
Volatility & Risk
Lululemon Athletica has a beta of 1.31, suggesting that its share price is 31% more volatile than the S&P 500. Comparatively, Perfect Moment has a beta of -3.46, suggesting that its share price is 446% less volatile than the S&P 500.
Insider & Institutional Ownership
85.2% of Lululemon Athletica shares are owned by institutional investors. Comparatively, 23.0% of Perfect Moment shares are owned by institutional investors. 0.5% of Lululemon Athletica shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Lululemon Athletica | 2 | 9 | 19 | 1 | 2.61 |
| Perfect Moment | 0 | 0 | 1 | 0 | 3.00 |
Lululemon Athletica presently has a consensus target price of $378.31, indicating a potential upside of 43.46%. Perfect Moment has a consensus target price of $6.00, indicating a potential upside of 440.54%. Given Perfect Moment’s stronger consensus rating and higher probable upside, analysts clearly believe Perfect Moment is more favorable than Lululemon Athletica.
Profitability
This table compares Lululemon Athletica and Perfect Moment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Lululemon Athletica | 17.05% | 42.16% | 25.02% |
| Perfect Moment | -67.38% | -513.83% | -119.38% |
Earnings & Valuation
This table compares Lululemon Athletica and Perfect Moment”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Lululemon Athletica | $10.59 billion | 3.03 | $1.55 billion | $14.70 | 17.94 |
| Perfect Moment | $21.31 million | 0.86 | -$8.72 million | ($1.30) | -0.85 |
Lululemon Athletica has higher revenue and earnings than Perfect Moment. Perfect Moment is trading at a lower price-to-earnings ratio than Lululemon Athletica, indicating that it is currently the more affordable of the two stocks.
Summary
Lululemon Athletica beats Perfect Moment on 13 of the 15 factors compared between the two stocks.
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.
About Perfect Moment
Perfect Moment Ltd., together with its subsidiaries, owns and operates a fashion brand that offers ski, surf, and activewear collections under the brand name of Perfect Moment. It offers skiwear, outerwear, swimwear and activewear for women, men, and children. The company sells its collections directly to customers through e-commerce and to wholesale accounts, as well as through other sales partnerships. Perfect Moment Ltd. was founded in 1984 and is based in London, the United Kingdom.
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