Head-To-Head Comparison: lululemon athletica (NASDAQ:LULU) and Swatch Group (OTCMKTS:SWGAY)

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

Insider & Institutional Ownership

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

Analyst Ratings

This is a summary of recent recommendations and price targets for Swatch Group and lululemon athletica, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Swatch Group	0	4	1	0	2.20
lululemon athletica	5	25	1	1	1.94

lululemon athletica has a consensus price target of $148.38, indicating a potential upside of 29.03%. Given lululemon athletica’s higher possible upside, analysts clearly believe lululemon athletica is more favorable than Swatch Group.

Profitability

This table compares Swatch Group and lululemon athletica’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Swatch Group	N/A	N/A	N/A
lululemon athletica	13.03%	31.26%	17.98%

Risk and Volatility

Swatch Group has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500. Comparatively, lululemon athletica has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500.

Earnings and Valuation

This table compares Swatch Group 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
Swatch Group	$7.58 billion	3.57	$3.62 million	N/A	N/A
lululemon athletica	$11.10 billion	1.23	$1.58 billion	$12.39	9.28

lululemon athletica has higher revenue and earnings than Swatch Group.

Summary

lululemon athletica beats Swatch Group on 10 of the 12 factors compared between the two stocks.

About Swatch Group

The Swatch Group AG designs, manufactures, and sells finished watches, jewelry, and watch movements and components worldwide. The company operates through Watches & Jewelry and Electronic Systems segments. The Watches & Jewelry segment designs, produces, and commercializes watches and jewelry. The Electronic Systems segment engages in the design, production, and commercialization of electronic components, as well as sports timing activities. It is also involved in the provision of assembly, research and development, administration, polishing, logistics and distribution, and customer services; and hard material products, microelectronics, watch cases and crowns, miniature low-frequency quartz crystals, thin wires, miniature batteries, watch dials, watch hands, bracelets, sports timing technology and equipment, precision parts, and assembly electronic components. In addition, the company engages in retail, communication, real estate, real estate management, finance, reinsurance, and art center businesses. It offers its watch and jewelry products primarily under the Breguet, Harry Winston, Blancpain, Glashütte Original, Jaquet Droz, Léon Hatot, Omega, Longines, Rado, Union Glashütte, Tissot, Balmain, Certina, Mido, Hamilton, Swatch, and Flik Flak brands. The Swatch Group AG was founded in 1983 and is headquartered in Biel/Bienne, Switzerland.

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.