Lululemon Athletica (NASDAQ:LULU) versus Centric Brands (NASDAQ:CTRC) Head to Head Analysis

Lululemon Athletica (NASDAQ:LULU) and Centric Brands (NASDAQ:CTRC) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, dividends, institutional ownership, risk, profitability and valuation.

Valuation & Earnings

This table compares Lululemon Athletica and Centric Brands’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Lululemon Athletica $3.29 billion 6.91 $483.80 million $3.84 45.43
Centric Brands $596.60 million 0.26 -$123.77 million ($6.02) -0.45

Lululemon Athletica has higher revenue and earnings than Centric Brands. Centric Brands 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 0.62, indicating that its stock price is 38% less volatile than the S&P 500. Comparatively, Centric Brands has a beta of -0.94, indicating that its stock price is 194% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Lululemon Athletica and Centric Brands, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lululemon Athletica 0 10 20 0 2.67
Centric Brands 0 0 0 0 N/A

Lululemon Athletica currently has a consensus target price of $190.25, indicating a potential upside of 9.05%. Given Lululemon Athletica’s higher probable upside, research analysts plainly believe Lululemon Athletica is more favorable than Centric Brands.

Insider & Institutional Ownership

81.3% of Lululemon Athletica shares are owned by institutional investors. Comparatively, 53.3% of Centric Brands shares are owned by institutional investors. 0.3% of Lululemon Athletica shares are owned by company insiders. Comparatively, 28.6% of Centric Brands shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Lululemon Athletica and Centric Brands’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lululemon Athletica 14.77% 38.77% 25.54%
Centric Brands -18.55% -424.90% -18.09%

Summary

Lululemon Athletica beats Centric Brands on 12 of the 13 factors compared between the two stocks.

Lululemon Athletica Company Profile

lululemon athletica inc., together with its subsidiaries, designs, distributes, and retails athletic apparel and accessories for women, men, and female youth. It operates through two segments, Company-Operated Stores and Direct to Consumer. The company offers pants, shorts, tops, and jackets for healthy lifestyle and athletic activities, such as yoga, running, and training, as well as other sweaty pursuits; and athletic wear for female youth. It also provides fitness-related accessories, including bags, socks, underwear, yoga mats and equipment, and water bottles. The company sells its products through a chain of company-operated stores; outlets and warehouse sales; a network of wholesale accounts, such as yoga studios, health clubs, and fitness centers; temporary locations, including seasonal stores; license and supply arrangements; and showrooms, as well as directly to consumer through mobile apps, and lululemon.com e-commerce site. As of February 3, 2019, it operated 440 company-operated stores under the lululemon and ivivva brands in the United States, Canada, Australia, the United Kingdom, New Zealand, China, Singapore, France, Japan, Ireland, Sweden, South Korea, Germany, and Switzerland. lululemon athletica inc. was founded in 1998 and is based in Vancouver, Canada.

Centric Brands Company Profile

Centric Brands Inc. designs, produces, manages, and builds kid's wear, and women's and men's accessories and apparel, and distributes its products across various retail and digital channels in North America and international markets. The company also licenses approximately 100 brands across its core product categories, including kid's, women's, and men's accessories and apparel. Its company-owned brands include Hudson, a designer and marketer of women's and men's branded denim and apparel; Robert Graham, an eclectic apparel and accessories brand; and SWIMS, a Scandinavian lifestyle brand for a range of footwear, apparel, and accessories. The company sells its products through its owned retail stores and e-commerce sites, as well as to various retailers, which include mass, department, and specialty stores. It operates retail stores for its Robert Graham and SWIMS brands. As of November 14, 2018, the company operated 30 Robert Graham brand stores, which consisted of 18 full price stores and 12 outlet stores; and 3 SWIMS brand stores, which consisted of 1 full price store and 2 outlet stores. The company was formerly known as Differential Brands Group Inc. and changed its name to Centric Brands Inc. in October 2018. Centric Brands Inc. was founded in 1987 and is based in New York, New York.

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