LULU vs. TDG

Last updated Jun 9, 2026

LULU (Lululemon Athletica Inc.) and TDG (TransDigm Group Incorporated) are both stocks. LULU operates in Apparel Retail (Consumer Cyclical), while TDG operates in Aerospace & Defense (Industrials). Over the past 10 years, LULU returned 5.24%/yr vs 22.15%/yr for TDG. At a 0.34 correlation, their price movements are largely independent.

Performance

LULU vs. TDG - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Lululemon Athletica Inc. (LULU) and TransDigm Group Incorporated (TDG). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, LULU achieves a -43.43% return, which is significantly lower than TDG's -9.29% return. Over the past 10 years, LULU has underperformed TDG with an annualized return of 5.24%, while TDG has yielded a comparatively higher 22.15% annualized return.

LULU

• 1D: 2.91%
• 1M: -10.39%
• YTD: -43.43%
• 6M: -35.78%
• 1Y: -55.69%
• 3Y*: -31.16%
• 5Y*: -18.52%
• 10Y*: 5.24%

TDG

• 1D: -2.62%
• 1M: -0.72%
• YTD: -9.29%
• 6M: -10.46%
• 1Y: -12.05%
• 3Y*: 20.83%
• 5Y*: 16.93%
• 10Y*: 22.15%

*Multi-year figures are annualized to reflect compound growth (CAGR)

LULU vs. TDG - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
LULU Lululemon Athletica Inc.	-43.43%	-45.66%	-25.21%	59.59%	-18.16%	12.48%	50.23%	90.50%	54.74%	20.93%
TDG TransDigm Group Incorporated	-9.29%	12.15%	32.27%	66.57%	1.77%	2.82%	10.51%	84.41%	23.83%	19.84%

Correlation

The correlation between LULU and TDG is 0.25, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.25
Correlation (3Y) Calculated over the trailing 3-year period	0.25
Correlation (5Y) Calculated over the trailing 5-year period	0.34
Correlation (10Y) Calculated over the trailing 10-year period	0.32
Correlation (All Time) Calculated using the full available price history since Jul 30, 2007	0.34

Fundamentals

Market Cap LULU : $13.57B TDG : $70.21B
EPS LULU : $12.35 TDG : $34.79
PE Ratio LULU : 9.52 TDG : 34.67
PEG Ratio LULU : 0.46 TDG : 1.03
PS Ratio LULU : 1.24 TDG : 7.38
Total Revenue (TTM) LULU : $11.20B TDG : $9.50B
Gross Profit (TTM) LULU : $6.24B TDG : $5.61B
EBITDA (TTM) LULU : $2.44B TDG : $4.78B

Return for Risk

LULU vs. TDG — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

LULU

LULU Risk / Return Rank: 2
LULU Sharpe Ratio Rank: 2
LULU Sortino Ratio Rank: 3
LULU Omega Ratio Rank: 3
LULU Calmar Ratio Rank: 1
LULU Martin Ratio Rank: 2

TDG

TDG Risk / Return Rank: 24
TDG Sharpe Ratio Rank: 23
TDG Sortino Ratio Rank: 22
TDG Omega Ratio Rank: 21
TDG Calmar Ratio Rank: 26
TDG Martin Ratio Rank: 26

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

LULU vs. TDG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Lululemon Athletica Inc. (LULU) and TransDigm Group Incorporated (TDG). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	LULU	TDG	Difference
Sharpe ratio: Return per unit of total volatility	-1.26	-0.44	-0.82
Sortino ratio: Return per unit of downside risk	-1.97	-0.41	-1.56
Omega ratio: Gain probability vs. loss probability	0.75	0.94	-0.19
Calmar ratio: Return relative to maximum drawdown	-1.00	-0.48	-0.52
Martin ratio: Return relative to average drawdown	-1.73	-0.83	-0.90
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

LULU vs. TDG - Sharpe Ratio Comparison

The current LULU Sharpe Ratio is -1.26, which is lower than the TDG Sharpe Ratio of -0.44. The chart below compares the historical Sharpe Ratios of LULU and TDG, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	LULU	TDG	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-1.26	-0.44	-0.82
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.44	0.61	-1.05
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.13	0.66	-0.53
Sharpe Ratio (All Time) Calculated using the full available price history	0.24	0.85	-0.60

Drawdowns

LULU vs. TDG - Drawdown Comparison

The maximum LULU drawdown since its inception was -92.26%, which is greater than TDG's maximum drawdown of -62.64%. Use the drawdown chart below to compare losses from any high point for LULU and TDG.

Drawdown Indicators

	LULU	TDG	Difference
Max Drawdown Largest peak-to-trough decline	-92.26%	-62.64%	-29.62%
Max Drawdown (1Y) Largest decline over 1 year	-55.90%	-25.30%	-30.60%
Max Drawdown (3Y) Largest decline over 3 years	-77.66%	-25.30%	-52.36%
Max Drawdown (5Y) Largest decline over 5 years	-77.66%	-25.30%	-52.36%
Max Drawdown (10Y) Largest decline over 10 years	-77.66%	-62.64%	-15.02%
Current Drawdown Current decline from peak	-77.01%	-20.46%	-56.55%
Average Drawdown Average peak-to-trough decline	-27.57%	-7.95%	-19.62%
Ulcer Index Depth and duration of drawdowns from previous peaks	33.71%	14.58%	+19.13%

Volatility

LULU vs. TDG - Volatility Comparison

Lululemon Athletica Inc. (LULU) has a higher volatility of 13.25% compared to TransDigm Group Incorporated (TDG) at 7.72%. This indicates that LULU's price experiences larger fluctuations and is considered to be riskier than TDG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	LULU	TDG	Difference
Volatility (1M) Calculated over the trailing 1-month period	13.25%	7.72%	+5.53%
Volatility (6M) Calculated over the trailing 6-month period	32.89%	21.00%	+11.89%
Volatility (1Y) Calculated over the trailing 1-year period	44.36%	27.63%	+16.73%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	42.19%	27.81%	+14.38%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	40.61%	33.78%	+6.83%

Dividends

LULU vs. TDG - Dividend Comparison

LULU has not paid dividends to shareholders, while TDG's dividend yield for the trailing twelve months is around 7.46%.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
LULU Lululemon Athletica Inc.	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
TDG TransDigm Group Incorporated	7.46%	6.77%	5.92%	3.46%	2.94%	0.00%	0.00%	11.16%	0.00%	8.01%	9.64%

Financials

LULU vs. TDG - Profitability Comparison

The chart below illustrates the profitability comparison between Lululemon Athletica Inc. and TransDigm Group Incorporated over time, highlighting three key metrics: Gross Profit Margin, Operating Margin, and Net Profit Margin.

LULU - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Lululemon Athletica Inc. reported a gross profit of 1.34B and revenue of 2.47B. Therefore, the gross margin over that period was 54.2%.

TDG - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, TransDigm Group Incorporated reported a gross profit of 1.51B and revenue of 2.54B. Therefore, the gross margin over that period was 59.4%.

LULU - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Lululemon Athletica Inc. reported an operating income of 276.95M and revenue of 2.47B, resulting in an operating margin of 11.2%.

TDG - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, TransDigm Group Incorporated reported an operating income of 1.18B and revenue of 2.54B, resulting in an operating margin of 46.3%.

LULU - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Lululemon Athletica Inc. reported a net income of 195.05M and revenue of 2.47B, resulting in a net margin of 7.9%.

TDG - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, TransDigm Group Incorporated reported a net income of 535.00M and revenue of 2.54B, resulting in a net margin of 21.0%.

Frequently Asked Questions

Can I hold both LULU and TDG in my portfolio?

LULU and TDG have a correlation of 0.25, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, LULU or TDG?

LULU has higher volatility (13.25%) compared to TDG (7.72%). In terms of maximum drawdown, LULU dropped -92.26% vs TDG's -62.64%.

Which has better risk-adjusted returns?

TDG currently has the higher Sharpe Ratio (-0.44 vs -1.26), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.