Live Nation Entertainment (NYSE:LYV) and Lululemon Athletica (NASDAQ:LULU) are both large-cap consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, risk, institutional ownership, valuation, dividends and earnings.
Volatility and Risk
Live Nation Entertainment has a beta of 1.38, meaning that its share price is 38% more volatile than the S&P 500. Comparatively, Lululemon Athletica has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent recommendations for Live Nation Entertainment and Lululemon Athletica, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Live Nation Entertainment | 0 | 5 | 1 | 0 | 2.17 |
| Lululemon Athletica | 0 | 10 | 20 | 1 | 2.71 |
Live Nation Entertainment presently has a consensus price target of $65.00, indicating a potential downside of 19.74%. Lululemon Athletica has a consensus price target of $385.3548, indicating a potential upside of 18.90%. Given Lululemon Athletica's stronger consensus rating and higher probable upside, analysts plainly believe Lululemon Athletica is more favorable than Live Nation Entertainment.
Profitability
This table compares Live Nation Entertainment and Lululemon Athletica's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Live Nation Entertainment | -32.49% | -161.81% | -12.94% |
| Lululemon Athletica | 13.69% | 28.89% | 16.88% |
Institutional & Insider Ownership
71.9% of Live Nation Entertainment shares are held by institutional investors. Comparatively, 82.0% of Lululemon Athletica shares are held by institutional investors. 5.5% of Live Nation Entertainment shares are held by insiders. Comparatively, 0.3% of Lululemon Athletica shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares Live Nation Entertainment and Lululemon Athletica's top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Live Nation Entertainment | $11.55 billion | 1.53 | $69.89 million | ($0.02) | -4,049.50 |
| Lululemon Athletica | $3.98 billion | 10.62 | $645.60 million | $4.93 | 65.74 |
Lululemon Athletica has lower revenue, but higher earnings than Live Nation Entertainment. Live Nation Entertainment 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 Live Nation Entertainment on 12 of the 15 factors compared between the two stocks.
