lululemon athletica (NASDAQ:LULU) & Tefron (OTCMKTS:TFRFF) Head-To-Head Analysis

Tefron (OTCMKTS:TFRFF) and lululemon athletica (NASDAQ:LULU) are both consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, profitability, institutional ownership, risk and valuation.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Tefron and lululemon athletica, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tefron	0	0	0	0	0.00
lululemon athletica	3	30	3	1	2.05

lululemon athletica has a consensus target price of $227.68, indicating a potential upside of 25.14%. Given lululemon athletica’s stronger consensus rating and higher possible upside, analysts clearly believe lululemon athletica is more favorable than Tefron.

Earnings & Valuation

This table compares Tefron and lululemon athletica”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tefron	$293.86 million	0.27	$15.11 million	$0.87	7.39
lululemon athletica	$10.90 billion	1.98	$1.81 billion	$14.71	12.37

lululemon athletica has higher revenue and earnings than Tefron. Tefron is trading at a lower price-to-earnings ratio than lululemon athletica, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

85.2% of lululemon athletica shares are held by institutional investors. 53.3% of Tefron shares are held by company insiders. Comparatively, 0.5% of lululemon athletica shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Tefron and lululemon athletica’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tefron	4.31%	15.13%	7.68%
lululemon athletica	16.38%	42.05%	24.10%

Volatility & Risk

Tefron has a beta of 1.06, meaning that its stock price is 6% more volatile than the S&P 500. Comparatively, lululemon athletica has a beta of 1.07, meaning that its stock price is 7% more volatile than the S&P 500.

Summary

lululemon athletica beats Tefron on 14 of the 15 factors compared between the two stocks.

About Tefron

Tefron Ltd. engages in the design, development, production, marketing, and sale of intimate apparel and activewear, and leisurewear worldwide. The company through Brands and Retail segments. It offers women’s intimate, and active and lounge wear; and men’s underwear, activewear, and baselayer products. Tefron Ltd. was incorporated in 1977 and is headquartered in Misgav, Israel.

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.