Financial Review: lululemon athletica (NASDAQ:LULU) versus TED BAKER (OTCMKTS:TBAKF)

lululemon athletica (NASDAQ:LULU) and TED BAKER (OTCMKTS:TBAKF) are both consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, earnings, risk and dividends.

Earnings and Valuation

This table compares lululemon athletica and TED BAKER”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
lululemon athletica	$10.59 billion	1.99	$1.81 billion	$14.71	12.07
TED BAKER	N/A	N/A	N/A	N/A	N/A

lululemon athletica has higher revenue and earnings than TED BAKER.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for lululemon athletica and TED BAKER, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
lululemon athletica	3	26	4	1	2.09
TED BAKER	0	0	0	0	0.00

lululemon athletica presently has a consensus price target of $233.33, indicating a potential upside of 31.40%. Given lululemon athletica’s stronger consensus rating and higher probable upside, equities analysts clearly believe lululemon athletica is more favorable than TED BAKER.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
lululemon athletica	16.38%	42.05%	24.10%
TED BAKER	N/A	N/A	N/A

Insider & Institutional Ownership

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 endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

lululemon athletica beats TED BAKER on 10 of the 10 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 TED BAKER

Ted Baker plc engages in the design, wholesale, and retail of menswear, womenswear, and accessories under the Ted Baker brand in the United States, the United Kingdom, rest of Europe, Canada, and South Africa. The company operates through three segments: Retail, Wholesale, and Licensing. It offers various collections, including childrenswear, suiting, lingerie and nightwear, men's underwear, fragrance, skincare, eyewear, watches, luggage, jewelry and personal technology accessories, bedding, towels, wallpapers, rugs, gifting and stationery, swimwear, footwear, and toiletries. The company distributes its products through retail stores, concessions, retailers, and department stores, as well as through its e-commerce business. It operates through a network of 85 own stores, 130 concessions, and 31 outlets. Ted Baker plc was founded in 1987 and is headquartered in London, the United Kingdom.