Better Buy: Lululemon vs. Under Armour

In this video, Motley Fool consumer-goods editor Austin Smith takes a close look at two high-end retailers of sports apparel: Under Armour and lululemon athletica, to see whether he can distinguish for us which of the two is the better place to put your money in this sector. The companies look somewhat alike on paper, with very similar numbers in many of their ratios, so Austin takes a look at the broader story to find the difference.

His analysis? Under Armour is the disruptive bug, gaining momentum, but attracting a lot of unwanted attention from the big players such as Nike and Adidas. Lululemon, meanwhile, is the niche innovator, distinct from the big boys, and even being imitated itself.

When you look at companies like Lululemon, you see just how important innovation is in retail today. The retail space is in the midst of the biggest paradigm shift since mail order took off at the turn of last century. Only those most forward-looking and capable companies will survive, and they'll handsomely reward investors who understand the landscape. You can read about the 3 Companies Ready to Rule Retail in our special report. Uncovering these top picks is free today; just click here to read more.

The article Better Buy: Lululemon vs. Under Armour originally appeared on Fool.com.

Austin Smith has no positions in the stocks mentioned above. The Motley Fool owns shares of Amazon.com, Dick's Sporting Goods, and Nike. Motley Fool newsletter services recommend Amazon.com, Lululemon Athletica, and Nike. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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