lululemon athletica inc. (LULU) vs Ross Stores, Inc. (ROST)

lululemon athletica inc. and Ross Stores, Inc. are both Apparel Retail companies. Ross Stores, Inc. is the larger, with a market value of $75.2B against $11.8B — 6.4× the size. lululemon athletica inc. trades at the lower P/E: 8.3× against 28.3×. Ross Stores, Inc. grew revenue faster over the last twelve months: 14.0% against 1.74%. lululemon athletica inc. has the higher net margin (12.8% vs 10.9%) and the lower return on invested capital (36.4% vs 60.6%). Across the 22 metrics below, lululemon athletica inc. leads on 16 and Ross Stores, Inc. on 6.

Valuation

Metric LULU ROST Apparel Retail median
P/E 8.30 28.35 12.56
P/S 1.03 3.06 0.35
P/B 2.39 11.12 1.57
Price to free cash flow 8.44 26.88 11.15
EV/EBITDA 4.08 18.35 7.42
EV/Sales 0.93 2.93 0.51
Earnings yield 12.05% 3.53% 5.76%
Free cash flow yield 11.84% 3.72% 4.34%

Profitability

Metric LULU ROST Apparel Retail median
Gross margin 56.11% 29.67% 41.90%
Operating margin 17.84% 13.75% 2.50%
Net margin 12.78% 10.85% 3.41%
Free cash flow margin 12.21% 11.38% 2.86%
Return on equity 30.90% 42.63% 7.71%
Return on assets 17.72% 17.45% 2.85%
Return on invested capital 36.36% 60.64% 6.41%

Growth

Metric LULU ROST Apparel Retail median
Revenue growth (TTM) 1.74% 14.02% 4.14%
EPS growth (last fiscal year) (9.43%) 4.59% —
Revenue growth, 5-year CAGR 20.33% 12.67% 5.92%
Net income growth, 5-year CAGR 21.81% 90.55% 0.00%

Health

Metric LULU ROST Apparel Retail median
Debt to equity 0.00 0.15 0.01
Current ratio 2.19 1.61 1.54
Net debt to EBITDA (0.67) (0.96) (0.29)

Dividend

Metric LULU ROST Apparel Retail median
Dividend yield — 0.93% 2.94%
Payout ratio 0.00 0.27 0.00

Size

Metric LULU ROST Apparel Retail median
Market cap 11.80b 75.15b 358.41m

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