Better Buy: Lululemon vs. On Holding Stock

Premium athleisure is a big business. Not only are people everywhere becoming more knowledgeable about the health benefits of getting a good workout, but the work-from-home trend means that people are dressing down more often.

While Nike is the biggest athletic-wear company by a large margin, there's plenty of room for competitors. Premium activewear is growing at a fast clip, led by Lululemon Athletica (NASDAQ: LULU), but On Holding (NYSE: ONON) is capturing market share and positioning itself as the "most" premium activewear company. Which of their stocks is the better buy today?

Lululemon has made a name for itself as the top name in this category. It's carved out a niche of brand-loyal customers who love its patented fabrics and seasonless styles and are willing to pay high prices to wear them. It's achieved this through cultivating a community of like-minded fitness enthusiasts and playing to their needs with products that suit their lifestyles.

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Source Fool.com