lululemon athletica (NASDAQ:LULU – Get Free Report) and Crocs (NASDAQ:CROX – 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 valuation, risk, profitability, institutional ownership, dividends, earnings and analyst recommendations.
Insider and Institutional Ownership
85.2% of lululemon athletica shares are held by institutional investors. Comparatively, 93.4% of Crocs shares are held by institutional investors. 0.5% of lululemon athletica shares are held by insiders. Comparatively, 3.0% of Crocs shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Analyst Recommendations
This is a summary of current ratings for lululemon athletica and Crocs, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| lululemon athletica | 1 | 12 | 17 | 1 | 2.58 |
| Crocs | 1 | 2 | 12 | 0 | 2.73 |
Profitability
This table compares lululemon athletica and Crocs’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| lululemon athletica | 16.82% | 43.48% | 25.05% |
| Crocs | 23.35% | 43.07% | 16.02% |
Valuation and Earnings
This table compares lululemon athletica and Crocs”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| lululemon athletica | $10.59 billion | 2.80 | $1.81 billion | $14.76 | 16.78 |
| Crocs | $4.10 billion | 1.47 | $950.07 million | $16.32 | 6.59 |
lululemon athletica has higher revenue and earnings than Crocs. Crocs 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 and Volatility
lululemon athletica has a beta of 1.17, meaning that its share price is 17% more volatile than the S&P 500. Comparatively, Crocs has a beta of 1.38, meaning that its share price is 38% more volatile than the S&P 500.
Summary
lululemon athletica beats Crocs on 9 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 Crocs
Crocs, Inc., together with its subsidiaries, designs, develops, manufactures, markets, distributes, and sells casual lifestyle footwear and accessories for men, women, and children under Crocs and HEYDUDE Brand in the United States and internationally. The company offers various footwear products, including clogs, sandals, slides, flips, wedges, platforms, socks, boots, charms, flip flops, sneakers, and slippers. It sells its products through wholesalers, retail stores, e-commerce sites, third-party marketplaces, and kiosks/store-in-store locations. Crocs, Inc. was founded in 1999 and is headquartered in Broomfield, Colorado.
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