lululemon athletica (NASDAQ:LULU) and Teijin (OTCMKTS:TINLY) Critical Comparison

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

Risk and Volatility

lululemon athletica has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500. Comparatively, Teijin has a beta of 0.05, suggesting that its share price is 95% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for lululemon athletica and Teijin, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
lululemon athletica	2	30	2	2	2.11
Teijin	0	0	0	0	0.00

lululemon athletica currently has a consensus price target of $227.57, indicating a potential upside of 19.10%. Given lululemon athletica’s stronger consensus rating and higher probable upside, equities analysts clearly believe lululemon athletica is more favorable than Teijin.

Institutional & Insider Ownership

85.2% of lululemon athletica shares are owned by institutional investors. 0.5% of lululemon athletica shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares lululemon athletica and Teijin”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
lululemon athletica	$11.07 billion	2.02	$1.81 billion	$14.43	13.24
Teijin	$6.60 billion	0.26	$187.09 million	($1.77)	-5.06

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
lululemon athletica	15.72%	39.78%	22.82%
Teijin	N/A	N/A	N/A

Summary

lululemon athletica beats Teijin on 15 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 Teijin

Teijin Limited engages in the fibers, films and sheets, composites, healthcare, and IT businesses worldwide. It offers aramid fibers and polyethylene materials; carbon fibers, composite materials, and oxidized PAN fibers; polycarbonate sheets and films; high-density polyethylene porous films and materials; and microporous films. The company also provides PC resins, polyphenylene sulfide resins, molded parts, and additives; lightweight glass and carbon fiber reinforced composites for automotive applications; and polytrimethylene telephthalate products, artificial leather materials, polyester nanofibers, and recycled polyester fibers. In addition, it offers pharmaceuticals for bone and joint, respiratory, cardiovascular and metabolic, and other diseases; home oxygen therapy, non-invasive positive pressure ventilation, rehabilitation, and sleep disordered breathing related devices, as well as sonic accelerated fracture healing system and community-based integrated care system; and orthopedic implantable devices, and functional food ingredients. Further, the company provides Recopic, a radio-frequency identification technology for inventory management. Additionally, it develops and implements engineering solutions for various issues, such as environmental pollution, energy supply stability, and aging-related workforce population decline. Teijin Limited was incorporated in 1918 and is headquartered in Tokyo, Japan.