Head-To-Head Contrast: Hugo Boss (OTCMKTS:BOSSY) and lululemon athletica (NASDAQ:LULU)

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

Risk and Volatility

lululemon athletica has a beta of 1.07, suggesting that its share price is 7% more volatile than the S&P 500. Comparatively, Hugo Boss has a beta of 0.61, suggesting that its share price is 39% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for lululemon athletica and Hugo Boss, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
lululemon athletica	2	28	2	1	2.06
Hugo Boss	0	2	0	0	2.00

lululemon athletica presently has a consensus target price of $206.77, indicating a potential upside of 32.78%. Given lululemon athletica’s stronger consensus rating and higher probable upside, equities analysts clearly believe lululemon athletica is more favorable than Hugo Boss.

Profitability

This table compares lululemon athletica and Hugo Boss’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
lululemon athletica	14.22%	34.82%	20.14%
Hugo Boss	5.92%	17.88%	7.09%

Insider and Institutional Ownership

85.2% of lululemon athletica shares are owned by institutional investors. 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 company is poised for long-term growth.

Valuation and Earnings

This table compares lululemon athletica and Hugo Boss”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
lululemon athletica	$11.10 billion	1.69	$1.58 billion	$13.30	11.71
Hugo Boss	$4.83 billion	0.61	$281.65 million	$0.83	10.20

lululemon athletica has higher revenue and earnings than Hugo Boss. Hugo Boss 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 Hugo Boss on 15 of the 15 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 Hugo Boss

Hugo Boss AG, together with its subsidiaries, provides apparels, shoes, and accessories for men and women worldwide. It also offers licensed products comprising of fragrances, eyewear, watches, children’s fashion, equestrian, and cycling. The company markets and sells its products under the BOSS and HUGO brand names through freestanding stores, shop-in-shops, factory outlets, multi-brand stores, and franchise business, as well as online retailers, distribution, and stores. Hugo Boss AG was founded in 1924 and is headquartered in Metzingen, Germany.