Under Armour (NYSE: UA) and Next (OTCMKTS:NXGPY) are both mid-cap consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, dividends, profitability, risk and earnings.
This table compares Under Armour and Next’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This table compares Under Armour and Next’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Under Armour||$4.98 billion||1.27||-$48.26 million||N/A||N/A|
|Next||$5.48 billion||1.93||$850.24 million||$2.93||12.62|
Next has higher revenue and earnings than Under Armour.
Volatility & Risk
Under Armour has a beta of -0.67, meaning that its stock price is 167% less volatile than the S&P 500. Comparatively, Next has a beta of 0.55, meaning that its stock price is 45% less volatile than the S&P 500.
Next pays an annual dividend of $1.50 per share and has a dividend yield of 4.1%. Under Armour does not pay a dividend. Next pays out 51.2% of its earnings in the form of a dividend.
This is a summary of current recommendations for Under Armour and Next, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Under Armour presently has a consensus price target of $14.50, indicating a potential upside of 1.68%. Given Under Armour’s higher possible upside, equities research analysts clearly believe Under Armour is more favorable than Next.
Insider and Institutional Ownership
32.3% of Under Armour shares are owned by institutional investors. 16.0% of Under Armour shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Under Armour beats Next on 8 of the 14 factors compared between the two stocks.
Under Armour Company Profile
Under Armour, Inc., together with its subsidiaries, develops, markets, and distributes branded performance apparel, footwear, and accessories for men, women, and youth primarily in North America, Europe, the Middle East, Africa, the Asia-Pacific, and Latin America. The company offers its apparel in compression, fitted, and loose types to be worn in hot, cold, and in between the extremes. It also provides various footwear products, including running, basketball, cleated, slides and performance training, and outdoor footwear. In addition, the company offers accessories, which include headwear, bags, and gloves; and digital fitness subscriptions, as well as digital advertising through MapMyFitness, MyFitnessPal, and Endomondo applications. It primarily offers its products under the UA Logo, UNDER ARMOUR, UA, ARMOUR, HEATGEAR, COLDGEAR, ALLSEASONGEAR, PROTECT THIS HOUSE, and I WILL, as well as ARMOURBITE, ARMOURSTORM, ARMOUR FLEECE, ARMOUR BRA, and UNDER ARMOUR CONNECTED FITNESS brands. The company sells its products through wholesale channels, including national and regional sporting goods chains, independent and specialty retailers, department store chains, institutional athletic departments, and leagues and teams, as well as independent distributors; and directly to consumers through a network of brand and factory house stores, and Website. Under Armour, Inc. was founded in 1996 and is headquartered in Baltimore, Maryland.
Next Company Profile
NEXT plc engages in the retail of clothing, footwear, accessories, and home products for men, women, and children in the United Kingdom, rest of Europe, the Middle East, Asia, and internationally. The company operates a chain of approximately 540 stores under the name NEXT Retail in the United Kingdom and Eire. It also offers products through NEXT Directory, an online and catalogue shopping business with approximately 4.5 million active customers, as well as international Websites serving approximately 70 countries. In addition, the company operates approximately 200 franchised stores under the NEXT International Retail name worldwide; and designs and sources NEXT branded products, as well as designs and sells younger women's fashion products under Lipsy brand name. Further, it provides property management services, including holding and lease of properties. The company was formerly known as J Hepworth & Son and changed its name to NEXT plc in 1986. NEXT plc was founded in 1864 and is headquartered in Enderby, the United Kingdom.
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