Capri (NYSE:CPRI) & lululemon athletica (NASDAQ:LULU) Financial Contrast

Capri (NYSE:CPRI) and lululemon athletica (NASDAQ:LULU) are both consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, profitability, earnings, institutional ownership and dividends.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Capri	$3.47 billion	0.64	$137.00 million	$1.77	12.12
lululemon athletica	$11.10 billion	1.10	$1.58 billion	$12.21	8.65

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Capri	6.12%	242.96%	7.54%
lululemon athletica	12.78%	27.69%	15.81%

Analyst Recommendations

This is a summary of current ratings and price targets for Capri and lululemon athletica, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Capri	1	9	4	2	2.44
lululemon athletica	7	23	0	1	1.84

Capri currently has a consensus price target of $22.13, indicating a potential upside of 3.17%. lululemon athletica has a consensus price target of $105.92, indicating a potential upside of 0.25%. Given Capri’s stronger consensus rating and higher probable upside, research analysts clearly believe Capri is more favorable than lululemon athletica.

Insider & Institutional Ownership

84.3% of Capri shares are owned by institutional investors. Comparatively, 85.2% of lululemon athletica shares are owned by institutional investors. 2.6% of Capri shares are owned by insiders. Comparatively, 0.5% of lululemon athletica shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility and Risk

Capri has a beta of 1.27, suggesting that its share price is 27% more volatile than the S&P 500. Comparatively, lululemon athletica has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500.

Summary

Capri beats lululemon athletica on 8 of the 15 factors compared between the two stocks.

About Capri

Capri Holdings Limited is a global fashion group focused on designing, marketing and distributing luxury apparel, footwear, handbags, accessories and related products. Its portfolio includes Michael Kors and Jimmy Choo, whose products are sold through company-operated stores, e-commerce platforms and wholesale partners. The company serves customers in markets around the world, including North America, Europe and Asia. Its brands offer a range of products, including ready-to-wear clothing, shoes, bags, watches, eyewear, jewelry and fragrances.

About lululemon athletica

lululemon athletica inc. is a Canadian athletic apparel and lifestyle company founded in Vancouver in 1998. It designs and sells technical clothing and accessories for activities including yoga, running, training and other forms of exercise, as well as everyday wear. Its product range includes apparel for women and men, footwear, bags and other fitness-related accessories. The company sells through its own retail stores and e-commerce channels, serving customers in North America and international markets. lululemon also supports fitness and wellness communities through events and other local initiatives, extending its brand beyond its products and retail operations.