Contrasting Perfect Moment (NASDAQ:PMNT) and Lululemon Athletica (NASDAQ:LULU)

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

Insider & Institutional Ownership

85.2% of Lululemon Athletica shares are owned by institutional investors. Comparatively, 23.0% of Perfect Moment shares are owned by institutional investors. 0.5% of Lululemon Athletica shares are owned by 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 Perfect Moment”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lululemon Athletica	$10.59 billion	2.97	$1.55 billion	$14.70	17.76
Perfect Moment	$21.31 million	0.82	-$8.72 million	($1.30)	-0.81

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.

Volatility and Risk

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

Analyst Recommendations

This is a breakdown of current ratings and target prices for Lululemon Athletica and Perfect Moment, as provided by MarketBeat.

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

Lululemon Athletica presently has a consensus price target of $371.79, indicating a potential upside of 42.43%. Perfect Moment has a consensus price target of $6.00, indicating a potential upside of 468.18%. Given Perfect Moment’s stronger consensus rating and higher possible upside, analysts clearly believe Perfect Moment is more favorable than Lululemon Athletica.

Profitability

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

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

Summary

Lululemon Athletica beats Perfect Moment on 13 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 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.