Head-To-Head Analysis: lululemon athletica (NASDAQ:LULU) versus LVMH-Moet Hennessy Louis Vuitton (OTCMKTS:LVMUY)

LVMH-Moet Hennessy Louis Vuitton (OTCMKTS:LVMUY) and lululemon athletica (NASDAQ:LULU) are both large-cap consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, profitability, risk and valuation.

Institutional & Insider Ownership

0.4% of LVMH-Moet Hennessy Louis Vuitton 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 company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and target prices for LVMH-Moet Hennessy Louis Vuitton and lululemon athletica, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LVMH-Moet Hennessy Louis Vuitton	0	5	3	4	2.92
lululemon athletica	2	32	2	1	2.05

lululemon athletica has a consensus price target of $228.19, indicating a potential upside of 9.81%. Given lululemon athletica’s higher possible upside, analysts plainly believe lululemon athletica is more favorable than LVMH-Moet Hennessy Louis Vuitton.

Risk and Volatility

LVMH-Moet Hennessy Louis Vuitton has a beta of 1.2, meaning that its stock price is 20% more volatile than the S&P 500. Comparatively, lululemon athletica has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500.

Earnings and Valuation

This table compares LVMH-Moet Hennessy Louis Vuitton 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
LVMH-Moet Hennessy Louis Vuitton	$91.64 billion	4.09	$13.58 billion	N/A	N/A
lululemon athletica	$10.59 billion	2.30	$1.81 billion	$14.43	14.40

LVMH-Moet Hennessy Louis Vuitton has higher revenue and earnings than lululemon athletica.

Profitability

This table compares LVMH-Moet Hennessy Louis Vuitton and lululemon athletica’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LVMH-Moet Hennessy Louis Vuitton	N/A	N/A	N/A
lululemon athletica	15.72%	39.78%	22.82%

Summary

LVMH-Moet Hennessy Louis Vuitton beats lululemon athletica on 7 of the 13 factors compared between the two stocks.

About LVMH-Moet Hennessy Louis Vuitton

LVMH Moët Hennessy – Louis Vuitton, Société Européenne operates as a luxury goods company worldwide. The company offers wines, and spirits under the domaine des Lambrays, Château d'Yquem, Dom Pérignon, Ruinart, Moët & Chandon, Hennessy, Veuve Clicquot, Château Galoupet, Ardbeg, Château Cheval Blanc, Glenmorangie, Krug, Mercier, Chandon, Joseph Phelps, Newton Vineyard, Cloudy Bay, Belvedere, Colgin Cellars,Terrazas de los Andes, Bodega Numanthia, Cheval des Andes, Woodinville, Ao Yun, Clos19, Volcan de mi Tierra, and Eminente brands; and fashion and leather products under the Loewe, Moynat, Louis Vuitton, Berluti, RIMOWA, Patou, Loro Piana, FENDI, Celine, Christian Dior, Emilio Pucci, Givenchy, Kenzo, and Marc Jacobs brands. It also provides perfumes and cosmetics under the Stella by Stella Mccartney, Officine Universelle Buly, Guerlain, Acqua di Parma, Parfums Christian Dior, Givenchy Parfums, Perfumes Loewe, Benefit Cosmetics, Make Up For Ever, Kenzo Parfums, Fresh, KVD Beauty, Maison Francis Kurkdjian, Cha Ling, Fenty Beauty by Rihanna, and Olehenriksen brands; watches and jewelry under the Chaumet, Tiffany & Co., TAG Heuer, Zenith, Bulgari, Fred, Hublot, and Repossi brands; and custom-designed yachts under the Feadship brand and hotels under the Cheval Blanc brand names, as well as designs and builds luxury yachts under the Royal Van Lent brand. In addition, the company offers daily newspapers under the Les Échos brand; Belmond, a luxury tourism service; home other activities under the Cova, Jardin d'Acclimatation, Le Parisien, Connaissance des Arts, Investir, and Radio Classique brands; and selective retailing products under the DFS, La Grande Epicerie de Paris, Le Bon Marché Rive Gauche, Sephora, and Starboard Cruise Services brands, as well as operates Jardin d'Acclimatation, a leisure and theme park. LVMH Moët Hennessy – Louis Vuitton, Société Européenne was founded in 1365 and is headquartered in Paris, France.

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.