Analyzing Lanvin Group (NYSE:LANV) and Lululemon Athletica (NASDAQ:LULU)

Lanvin Group (NYSE:LANV – Get Rating) and Lululemon Athletica (NASDAQ:LULU – Get Rating) are both consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, risk, earnings, institutional ownership, analyst recommendations and valuation.

Analyst Ratings

This is a summary of current ratings and recommmendations for Lanvin Group and Lululemon Athletica, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lanvin Group	0	1	0	0	2.00
Lululemon Athletica	3	3	22	1	2.72

Lanvin Group presently has a consensus price target of $6.50, suggesting a potential upside of 25.73%. Lululemon Athletica has a consensus price target of $404.50, suggesting a potential upside of 11.40%. Given Lanvin Group’s higher possible upside, equities analysts plainly believe Lanvin Group is more favorable than Lululemon Athletica.

Earnings & Valuation

This table compares Lanvin Group and Lululemon Athletica’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lanvin Group	$422.31 million	1.60	-$229.99 million	$0.33	15.67
Lululemon Athletica	$8.11 billion	5.69	$854.80 million	$6.68	54.36

Lululemon Athletica has higher revenue and earnings than Lanvin Group. Lanvin Group 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 Lanvin Group and Lululemon Athletica’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lanvin Group	N/A	-443.09%	-50.06%
Lululemon Athletica	10.54%	44.01%	25.11%

Institutional and Insider Ownership

50.0% of Lanvin Group shares are owned by institutional investors. Comparatively, 82.0% of Lululemon Athletica shares are owned by institutional investors. 2.7% of Lanvin Group shares are owned by company insiders. Comparatively, 0.5% of Lululemon Athletica 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.

Risk & Volatility

Lanvin Group has a beta of 0.01, meaning that its share price is 99% less volatile than the S&P 500. Comparatively, Lululemon Athletica has a beta of 1.39, meaning that its share price is 39% more volatile than the S&P 500.

Summary

Lululemon Athletica beats Lanvin Group on 13 of the 15 factors compared between the two stocks.

About Lanvin Group

(Get Rating)

Lanvin Group Holdings Limited manufactures and sells fashion apparel, accessories, and fragrances for men and women. The company was founded in 2015 and is based in Shanghai, China. Lanvin Group Holdings Limited operates as a subsidiary of Fosun International Limited.

About Lululemon Athletica

(Get Rating)

lululemon athletica, Inc. engages in the business of designing, distributing, and retailing technical athletic apparel, footwear, and accessories. It operates through the following segments: Company-Operated Stores, Direct to Consumer, and Other. The company was founded by Dennis James Wilson in 1998 and is headquartered in Vancouver, Canada.