Generally, when thinking of large sports apparel retailers, most people will think of Under Armour and Nike first. They are two of the largest retailers in their industry but, trouble lies beneath the surface for Nike. After conducting thorough research on both companies, the most significant indices proved to be Net Income and Stock Price. These two indices will help prove that Nike is in a better financial position throughout this reading.
Why Under Armour VS. NIKE?
Although Under Armour is a much younger company than Nike and Nike operates on a much larger scale in terms of nearly every financial segment, the two companies can essentially be considered the top two companies in their industry. Under Armour stormed onto the scene with …show more content…
So instead of focusing on the total worth of the two were going to be looking at things such as growth and industry averages. Comparing the current stock prices of the two Nike sits at $66.82 as of March 12th, 2018 while UA sits at $17.18 which is considerably lower as one would expect. However, the most important part of these stock prices is that Nike’s has increased 17.91% over their previous year’s number while UA has decreased by 9.82%. Obviously, these numbers are very disappointing for UA as their target price was $22.50. So not only did UA fail to meet their target price, they failed to improve at all. This will prove to be a common theme as I go over the other four key financial …show more content…
These two are easy to tie together mostly because UA has a negative EPS there for they technically have a P/E ratio of 0. This negative EPS and non-existent P/E could prove to be very detrimental to the company as it means that investors will have little to no confidence in the brand and withdrawal their support. These numbers are both down from UA’s recent fiscal years and I will explain why in the next paragraph, but first let's talk about Nike. They have an EPS of $2.31 and a P/E ratio of $28.92. The industry average for P/E ratios is 15.8 and the fact that Nike exceeds that average means that investors are expecting higher growth and are there for more willing to pay premium prices for share. So if an investor were comparing these two companies they would be more willing to side with Nike as they demonstrate more stability and growth through a high P/E ratio and
Why Under Armour VS. NIKE?
Although Under Armour is a much younger company than Nike and Nike operates on a much larger scale in terms of nearly every financial segment, the two companies can essentially be considered the top two companies in their industry. Under Armour stormed onto the scene with …show more content…
So instead of focusing on the total worth of the two were going to be looking at things such as growth and industry averages. Comparing the current stock prices of the two Nike sits at $66.82 as of March 12th, 2018 while UA sits at $17.18 which is considerably lower as one would expect. However, the most important part of these stock prices is that Nike’s has increased 17.91% over their previous year’s number while UA has decreased by 9.82%. Obviously, these numbers are very disappointing for UA as their target price was $22.50. So not only did UA fail to meet their target price, they failed to improve at all. This will prove to be a common theme as I go over the other four key financial …show more content…
These two are easy to tie together mostly because UA has a negative EPS there for they technically have a P/E ratio of 0. This negative EPS and non-existent P/E could prove to be very detrimental to the company as it means that investors will have little to no confidence in the brand and withdrawal their support. These numbers are both down from UA’s recent fiscal years and I will explain why in the next paragraph, but first let's talk about Nike. They have an EPS of $2.31 and a P/E ratio of $28.92. The industry average for P/E ratios is 15.8 and the fact that Nike exceeds that average means that investors are expecting higher growth and are there for more willing to pay premium prices for share. So if an investor were comparing these two companies they would be more willing to side with Nike as they demonstrate more stability and growth through a high P/E ratio and