Levi Strauss & Co. (NYSE:LEVI) vs. lululemon athletica (NASDAQ:LULU) Critical Comparison

lululemon athletica (NASDAQ:LULU) and Levi Strauss & Co. (NYSE:LEVI) are both consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, dividends, valuation and analyst recommendations.

Valuation & Earnings

This table compares lululemon athletica and Levi Strauss & Co.”s top-line 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	1.15	$1.58 billion	$12.21	9.04
Levi Strauss & Co.	$6.28 billion	1.49	$578.10 million	$1.50	16.25

lululemon athletica has higher revenue and earnings than Levi Strauss & Co.. lululemon athletica is trading at a lower price-to-earnings ratio than Levi Strauss & Co., indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

lululemon athletica has a beta of 0.84, indicating that its share price is 16% less volatile than the S&P 500. Comparatively, Levi Strauss & Co. has a beta of 1.3, indicating that its share price is 30% more volatile than the S&P 500.

Profitability

This table compares lululemon athletica and Levi Strauss & Co.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
lululemon athletica	12.78%	27.69%	15.81%
Levi Strauss & Co.	8.83%	27.40%	9.31%

Analyst Recommendations

This is a summary of recent recommendations for lululemon athletica and Levi Strauss & Co., as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
lululemon athletica	7	23	0	1	1.84
Levi Strauss & Co.	0	3	10	1	2.86

lululemon athletica currently has a consensus price target of $105.92, indicating a potential downside of 4.03%. Levi Strauss & Co. has a consensus price target of $26.92, indicating a potential upside of 10.47%. Given Levi Strauss & Co.’s stronger consensus rating and higher probable upside, analysts plainly believe Levi Strauss & Co. is more favorable than lululemon athletica.

Institutional & Insider Ownership

85.2% of lululemon athletica shares are held by institutional investors. Comparatively, 69.1% of Levi Strauss & Co. shares are held by institutional investors. 0.5% of lululemon athletica shares are held by insiders. Comparatively, 1.1% of Levi Strauss & Co. shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

About lululemon athletica

lululemon athletica inc. is a Canadian athletic apparel and lifestyle company founded in Vancouver in 1998. It designs and sells technical clothing and accessories for activities including yoga, running, training and other forms of exercise, as well as everyday wear. Its product range includes apparel for women and men, footwear, bags and other fitness-related accessories. The company sells through its own retail stores and e-commerce channels, serving customers in North America and international markets. lululemon also supports fitness and wellness communities through events and other local initiatives, extending its brand beyond its products and retail operations.

About Levi Strauss & Co.

Levi Strauss & Co. is a global apparel company best known for its Levi’s denim jeans. Founded in 1853 by Levi Strauss, the company has grown from a San Francisco dry-goods business into a designer, marketer and distributor of jeans, casual apparel and related accessories. Its portfolio includes the Levi’s, Dockers and Beyond Yoga brands. Products are sold through wholesale partners and the company’s own retail stores and e-commerce channels in markets around the world. Michelle Gass became president and chief executive officer in January 2024.