Lululemon Athletica (NASDAQ:LULU) versus Perfect Moment (NASDAQ:PMNT) Critical Review

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

Insider & Institutional Ownership

23.0% of Perfect Moment shares are held by institutional investors. Comparatively, 85.2% of Lululemon Athletica shares are held by institutional investors. 0.5% of Lululemon Athletica shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Perfect Moment and Lululemon Athletica’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Perfect Moment	-67.38%	-513.83%	-119.38%
Lululemon Athletica	17.05%	42.16%	25.02%

Volatility and Risk

Perfect Moment has a beta of -3.46, indicating that its share price is 446% less volatile than the S&P 500. Comparatively, Lululemon Athletica has a beta of 1.31, indicating that its share price is 31% more volatile than the S&P 500.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Perfect Moment	0	0	1	0	3.00
Lululemon Athletica	2	9	19	1	2.61

Perfect Moment presently has a consensus target price of $6.00, indicating a potential upside of 566.67%. Lululemon Athletica has a consensus target price of $372.28, indicating a potential upside of 42.25%. Given Perfect Moment’s stronger consensus rating and higher possible upside, research analysts plainly believe Perfect Moment is more favorable than Lululemon Athletica.

Earnings and Valuation

This table compares Perfect Moment and Lululemon Athletica”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Perfect Moment	$21.31 million	0.70	-$8.72 million	($1.30)	-0.69
Lululemon Athletica	$10.59 billion	2.98	$1.55 billion	$14.70	17.80

Lululemon Athletica has higher revenue and earnings than Perfect Moment. Perfect Moment is trading at a lower price-to-earnings ratio than Lululemon Athletica, indicating that it is currently the more affordable of the two stocks.

Summary

Lululemon Athletica beats Perfect Moment on 13 of the 15 factors compared between the two stocks.

About Perfect Moment

Perfect Moment Ltd., together with its subsidiaries, owns and operates a fashion brand that offers ski, surf, and activewear collections under the brand name of Perfect Moment. It offers skiwear, outerwear, swimwear and activewear for women, men, and children. The company sells its collections directly to customers through e-commerce and to wholesale accounts, as well as through other sales partnerships. Perfect Moment Ltd. was founded in 1984 and is based in London, the United Kingdom.

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.