Financial Contrast: Under Armour (NYSE:UA) versus Under Armour (UAA)

Under Armour (NYSE: UAA) and Under Armour (NYSE:UA) are both mid-cap consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their dividends, risk, earnings, institutional ownership, profitability, valuation and analyst recommendations.

Volatility & Risk

Under Armour has a beta of -0.02, meaning that its share price is 102% less volatile than the S&P 500. Comparatively, Under Armour has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500.

Institutional & Insider Ownership

30.5% of Under Armour shares are owned by institutional investors. Comparatively, 30.2% of Under Armour shares are owned by institutional investors. 16.4% of Under Armour shares are owned by insiders. Comparatively, 16.5% of Under Armour shares are owned 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.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Under Armour and Under Armour, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Under Armour 12 19 5 0 1.81
Under Armour 8 8 4 0 1.80

Under Armour currently has a consensus price target of $19.54, indicating a potential upside of 21.79%. Under Armour has a consensus price target of $18.00, indicating a potential upside of 25.00%. Given Under Armour’s higher probable upside, analysts clearly believe Under Armour is more favorable than Under Armour.

Earnings and Valuation

This table compares Under Armour and Under Armour’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Under Armour $4.98 billion 1.42 $526.36 million $0.48 33.42
Under Armour $4.98 billion 1.28 $526.36 million $0.48 30.00

Under Armour is trading at a lower price-to-earnings ratio than Under Armour, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Under Armour and Under Armour’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Under Armour 4.38% 10.93% 5.91%
Under Armour 4.38% 11.06% 5.96%

About Under Armour

Under Armour, Inc. is engaged in the development, marketing and distribution of branded performance apparel, footwear and accessories for men, women and youth. The Company’s segments include North America, consisting of the United States and Canada; Europe, the Middle East and Africa (EMEA); Asia-Pacific; Latin America, and Connected Fitness. Its products are sold across the world and worn by athletes at all levels, from youth to professional, on playing fields around the globe, as well as by consumers with active lifestyles. The Company sells its branded apparel, footwear and accessories in North America through its wholesale and direct to consumer channels. As of December 31, 2016, the Company had approximately 151 factory house stores in North America primarily located in outlet centers throughout the United States. In addition, the Company distributes its products in North America through third-party logistics providers with primary locations in Canada, New Jersey and Florida.

About Under Armour

Under Armour, Inc. is engaged in the development, marketing and distribution of branded performance apparel, footwear and accessories for men, women and youth. The Company’s segments include North America, consisting of the United States and Canada; Europe, the Middle East and Africa (EMEA); Asia-Pacific; Latin America, and Connected Fitness. Its products are sold across the world and worn by athletes at all levels, from youth to professional, on playing fields around the globe, as well as by consumers with active lifestyles. The Company sells its branded apparel, footwear and accessories in North America through its wholesale and direct to consumer channels. As of December 31, 2016, the Company had approximately 151 factory house stores in North America primarily located in outlet centers throughout the United States. In addition, the Company distributes its products in North America through third-party logistics providers with primary locations in Canada, New Jersey and Florida.

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