SafetyMargin.ioSafetyMargin.io
BlogWatchlistCompare
Compare Stocks › LULU vs UNH

lululemon athletica inc. (LULU) vs UnitedHealth Group Incorporated (UNH): Which Is the Better Buy in 2026?

As of 2026-06-19, LULU is undervalued at $112, with a DCF intrinsic value of $235 and a margin of safety of 53%. UNH is fairly valued at $401, with an intrinsic value of $376 and a margin of safety of -7%. Of the two, LULU has the wider margin of safety.

LULU
lululemon athletica inc.
$111.77
VS
UNH
UnitedHealth Group Incorporated
$400.96

Rewards

LULU
  • ★lululemon athletica inc. has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
  • ★lululemon athletica inc. scores 93/100 on the Economic Moat Score (Wide Moat), with margin stability as the strongest competitive dimension.
  • ★Free cash flow has grown at a 41.1% CAGR over the past 4 years, demonstrating strong earnings power growth.
UNH
  • ★UnitedHealth Group Incorporated scores 73/100 on the Economic Moat Score (Wide Moat), with revenue predictability as the strongest competitive dimension.

Risks

LULU
    UNH
    • ⚠ROIC has declined by 6.9 percentage points over the past 4 years, which may signal competitive erosion.
    • ⚠Gross margin of 18.8% is low, suggesting a competitive or commodity-like market with limited pricing power.
    • ⚠Free cash flow has declined at a 11.8% CAGR over the past 4 years — a concerning trend.

    Key Valuation Metrics

    Learn more →
    LULU
    UNH
    Valuation
    $1.13B
    Free Cash Flow
    $17.69B
    8.93%
    FCF Yield
    4.86%
    9.05
    Trailing P/E
    30.17
    9.74
    Forward P/E
    19.18
    Quality & Moat
    14.25%
    ROIC
    15.60%
    32.03%
    ROE
    12.18%
    55.69%
    Gross Margin
    18.80%
    0.64
    PEG Ratio
    1.41
    Balance Sheet Safety
    0.13
    Net Debt / Equity
    0.44
    N/A
    Interest Coverage
    N/A
    0.24
    Net Debt / EBITDA
    2.18
    0.00%
    Dividend Yield
    2.21%
    LULU: 8Ties: 1UNH: 3
    LULUUNH

    Historical Fundamentals

    Learn more →
    LULU

    Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.

    UNH

    Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.

    Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.

    $1 Retained Earnings Test

    Learn more →
    LULU
    $-10.53
    created per $1 retained over 3 years
    Market Cap Declined
    Σ Retained
    $4.94B
    Δ Market Cap
    $-52.08B
    Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
    > $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
    UNH
    $-7.37
    created per $1 retained over 3 years
    Market Cap Declined
    Σ Retained
    $26.63B
    Δ Market Cap
    $-196.16B
    Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
    > $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer

    Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
    > $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer

    Discounted Cash Flow (DCF) Analysis

    Learn more →
    LULU
    52.5% Margin of Safety
    Price is 52.5% below estimated fair value
    Current Price: $111.77
    Fair Value: $235.32
    Strongly undervalued
    Undervalued
    Fairly valued
    Overvalued
    Strongly overvalued
    UNH
    6.6% Overvalued
    Price is 6.6% above estimated fair value
    Current Price: $400.96
    Fair Value: $376.14
    Strongly undervalued
    Undervalued
    Fairly valued
    Overvalued
    Strongly overvalued

    Reverse DCF — Market-Implied Growth

    Learn more →
    LULU

    What growth rate is the market pricing in at $112?

    -4.3%
    Market-Implied Owner Earnings Growth
    Standard FCF implies +0.4%

    The market implies -4.3% Owner Earnings growth, below historical trends — potential opportunity.

    Standard FCF implies a more demanding +0.4%, reflecting heavy growth investment expected to generate future returns.

    UNH

    What growth rate is the market pricing in at $401?

    +14.1%
    Market-Implied Owner Earnings Growth
    Standard FCF implies +9.8%

    The market implies +14.1% Owner Earnings growth, above historical trends.

    Standard FCF implies a demanding +9.8%, reflecting heavy growth investment.

    Economic Moat Score

    Learn more →
    LULU
    93/100
    Wide Moat
    70+ Wide · 40-69 Narrow · <40 None

    Wide moat with strength across all dimensions. Margin Stability is the standout factor.

    Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 4 years of fundamental data.
    UNH
    73/100
    Wide Moat
    70+ Wide · 40-69 Narrow · <40 None

    Wide moat driven primarily by revenue predictability. Margin Stability is the area most vulnerable to competitive pressure.

    Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 4 years of fundamental data.

    Forensic Accounting

    Learn more →
    LULU
    -1.92
    Possible Manipulator
    Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

    M-Score Trend

    Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.
    UNH
    -2.45
    Unlikely Manipulator
    Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

    M-Score Trend

    Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.

    Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.

    Ownership Breakdown

    Learn more →
    LULU
    Insiders 4.7%Institutions 82.5%Retail & Other 12.8%
    No. of Institutional Holders1,393
    High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.
    UNH
    Insiders 0.2%Institutions 85.9%Retail & Other 13.8%
    No. of Institutional Holders4,020
    High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.

    High insider ownership aligns management incentives with shareholders. Institutional concentration can indicate smart-money conviction but also crowding risk.

    Insider Buying Activity

    Learn more →
    LULU
    1
    Buys (3M)
    2
    Buys (12M)
    Total value (12M): $1.49M
    MAESTRINI ANDRE
    Chief Executive Officer
    $494,590
    @ $151.02 · 2026-04-01
    BERGH CHARLES V
    Director
    $999,978
    @ $164.20 · 2026-03-20
    MCDONALD CALVIN
    Chief Executive Officer
    $1.04M
    @ $260.00 · 2024-09-03
    Open market purchases · includes direct & indirect ownership · excludes option exercises
    UNH
    0
    Buys (3M)
    0
    Buys (12M)
    HEMSLEY STEPHEN J
    Chief Executive Officer
    $25.02M
    @ $288.57 · 2025-05-16
    REX JOHN F
    President
    $5.00M
    @ $291.12 · 2025-05-16
    GIL KRISTEN
    Director
    $1.00M
    @ $271.17 · 2025-05-15
    FLYNN TIMOTHY PATRICK
    Director
    $491,786
    @ $320.80 · 2025-05-14
    NOSEWORTHY JOHN H
    Director
    $93,647
    @ $312.16 · 2025-05-14
    FLYNN TIMOTHY PATRICK
    Director
    $511,575
    @ $511.57 · 2025-01-17
    Open market purchases · includes direct & indirect ownership · excludes option exercises

    Open market purchases · includes direct & indirect ownership · excludes option exercises.

    Insider Selling Activity

    Learn more →
    LULU
    1
    Sells (3M)
    5
    Sells (12M)
    Total value (12M): $9.90M
    NEUBURGER NICOLE
    Officer
    $100,142
    @ $161.00 · 2026-04-08
    FRANK MEGHAN
    Chief Financial Officer
    $561,821
    @ $211.37 · 2025-12-30
    BURGOYNE CELESTE
    Officer
    $2.76M
    @ $204.00 · 2025-12-16
    NEUBURGER NICOLE
    Officer
    $109,470
    @ $178.00 · 2025-09-30
    MCDONALD CALVIN
    Chief Executive Officer
    $6.38M
    @ $235.69 · 2025-06-27
    NEUBURGER NICOLE
    Officer
    $782,735
    @ $387.11 · 2024-12-26
    BURGOYNE CELESTE
    Officer
    $10.09M
    @ $405.54 · 2024-12-09
    NEUBURGER NICOLE
    Officer
    $131,021
    @ $269.59 · 2024-09-26
    Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives
    UNH
    1
    Sells (3M)
    1
    Sells (12M)
    Total value (12M): $284,000
    CONWAY PATRICK HUGH M.D.
    Officer
    $284,000
    @ $355.00 · 2026-04-23
    CONWAY PATRICK HUGH M.D.
    Chief Executive Officer
    $179,645
    @ $305.00 · 2025-06-10
    Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives

    Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives.

    🎭 Mr. Market's Mood

    Learn more →
    LULU
    FearGreed
    😨Fear(25/100)

    "Market is pessimistic — investigate whether fears are temporary or structural"

    Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.
    UNH
    FearGreed
    😏Greed(68/100)

    "Market is optimistic — be cautious and ensure you have a margin of safety"

    Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.

    Composite sentiment score based on market signals. Inspired by Buffett’s "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.

    ⚖️ Buffett Signal

    Learn more →
    LULU
    ⚪Awaiting DCF Data

    The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

    DCF Margin of Safety: N/AMr. Market's Mood: Fear (25)
    UNH
    ⚪Awaiting DCF Data

    The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

    DCF Margin of Safety: N/AMr. Market's Mood: Greed (68)
    View LULU Full AnalysisView UNH Full Analysis

    Frequently Asked Questions: LULU vs UNH

    Is lululemon athletica inc. or UnitedHealth Group Incorporated more undervalued in 2026?▼

    Based on our discounted cash flow model, LULU trades at a 52.5% margin of safety (intrinsic value $235 vs. price $112), compared to UNH's -6.6% margin of safety (intrinsic $376 vs. $401).

    Which stock has a wider economic moat, lululemon athletica inc. or UnitedHealth Group Incorporated?▼

    LULU scores 93/100 (Wide moat), while UNH scores 73/100 (Wide moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.

    Is UnitedHealth Group Incorporated in financial distress?▼

    UNH's Altman Z-Score of 2.9 places it in the Grey zone, signaling elevated bankruptcy risk. LULU scores 5.5 (Safe zone). The Altman Z-Score is a five-factor model that predicts insolvency within two years; scores below 1.81 indicate significant distress.

    Which company has better free cash flow, lululemon athletica inc. or UnitedHealth Group Incorporated?▼

    lululemon athletica inc. (LULU) generates a 8.9% free cash flow yield, compared to UnitedHealth Group Incorporated's 4.9%. A higher FCF yield means the business converts more of its market value into cash that can be returned to shareholders or reinvested.

    Which stock has higher return on invested capital, lululemon athletica inc. or UnitedHealth Group Incorporated?▼

    UNH earns 15.6% ROIC versus LULU's 14.2%. A higher ROIC means the company generates more profit per dollar of capital employed, a hallmark of durable competitive advantage in Buffett-style analysis.

    LULU vs UNH: Which Is the Better Buy in 2026? | SafetyMargin.io