Head-To-Head Contrast: lululemon athletica (LULU) and K Swiss (KSWS)
lululemon athletica (NASDAQ: LULU) and K Swiss (NASDAQ:KSWS) are both consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, risk, institutional ownership, analyst recommendations, earnings, profitability and dividends.
Insider & Institutional Ownership
79.3% of lululemon athletica shares are held by institutional investors. 0.3% of lululemon athletica shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
This table compares lululemon athletica and K Swiss’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current ratings and recommmendations for lululemon athletica and K Swiss, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
lululemon athletica presently has a consensus price target of $70.53, suggesting a potential downside of 8.26%. Given lululemon athletica’s higher probable upside, analysts plainly believe lululemon athletica is more favorable than K Swiss.
Earnings and Valuation
This table compares lululemon athletica and K Swiss’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|lululemon athletica||$2.34 billion||4.44||$303.38 million||$2.01||38.25|
lululemon athletica has higher revenue and earnings than K Swiss. K Swiss is trading at a lower price-to-earnings ratio than lululemon athletica, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
lululemon athletica has a beta of 0.19, meaning that its share price is 81% less volatile than the S&P 500. Comparatively, K Swiss has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500.
lululemon athletica beats K Swiss on 9 of the 10 factors compared between the two stocks.
About lululemon athletica
lululemon athletica inc. is a designer, distributor and retailer of athletic apparel. The Company operates through two segments: Company-operated stores and Direct to consumer. It is also engaged in the sale from outlets, showrooms, sales from temporary locations, sales to wholesale accounts, warehouse sales, and license and supply arrangements. Its direct to consumer segment generates revenue from its lululemon and ivivva e-commerce Websites, www.lululemon.com and www.ivivva.com, and other country and region specific Websites. It offers a range of apparel and accessories for women, men and female youth. The Company’s apparel assortment includes items, such as pants, shorts, tops, and jackets designed for healthy lifestyle and athletic activities, such as yoga, running, training, most other sweaty pursuits, and athletic wear for female youth. The Company also offers fitness-related accessories, including an array of items, such as bags, socks, underwear, yoga mats and water bottles.
About K Swiss
K-Swiss Inc. (K-Swiss) is engaged in designing, developing and marketing an array of footwear, apparel and accessories for athletic, sports and fitness activities and casual wear under the K-Swiss brand. The Company also designs, develops and markets footwear for adventurers for all terrains under the Palladium brand. The Company sells products primarily to footwear stores, pro shops, sporting goods stores and department stores. Internationally, as of December 31, 2011, K-Swiss had the right to market its products in 124 countries through eight international subsidiaries and 29 distributors. During the year ended December 31, 2011, approximately 60%, 21%, 17% and 2% of the Company’s footwear products were manufactured in China, Thailand, Vietnam and Indonesia, respectively. In May 2013, E.Land World Ltd. completed the acquisition of K Swiss Inc in a merger transaction.
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