Under Armour is a pure growth play for and beyond. The Adidas Group also owns two other widely recognized names in athletics: Under Armour has also acquired several fitness app companies, as it seeks to integrate mobile technologies to bolster its brand.
However year-over-year comparisons will be tough to achieve as Nike received a nice boost in the comparable quarter last year from the FIFA World Cup. Its turnaround in the part of its business operations has been widely praised.
However, the company appears to be investing in key areas that will bolster the brand in years to come. Will Nike remain at the top of the athletic apparel market, or will Under Armour slowly take away its market share? Adidas is unlikely to experience exponential share price growth, but at its current priceit appears to be a sound investment for Delivered twice a week, straight to your inbox.
Nike markets most of its products using the Nike name, but it also owns smaller niche brands, such as Jordan and Converse. Its shares reached all-time highs inand its growth projections continue to be aggressive. Each company has carved out an impressive market share in a seemingly continuously growing and innovating industry.
Overview of Under Armour Under Armour is by far the youngest of the three stocks, having gone public in However, the company does not boast quite the same level of high-end sponsored athletes, which could harm its perceived values relative to the other two companies.
It tends to appeal to younger market segments, and it often prices its products at a premium for its perceived quality of innovative materials and designs. Under Armour will no doubt be on the attack in years to come.
We pick that athlete with a chip on their shoulder and their desire to win because it aligns with our own attitude. Overview of Nike Nike is the largest company of the three and perhaps the one with the most brand recognition. On the other hand, Sterne Agee analyst Sam Poser remains cautious on stock.
Competitive Dynamics Nike is the giant in the industry and perhaps has the most to lose. It plans to create this growth through investments to increase its speed of new products to market, which will allow the company to adapt more quickly.
Should Nike investors be worried?
Competitors like Under Armour will continue to innovate to attempt to steal market share away, and the younger generation of buyers may show signs of favoring smaller brands and more transparently sourced goods that they can obtain easily through online shopping.
It intends to accomplish this by significantly increasing its direct sales and e-commerce revenues in developed markets. While Adidas was initially known as a soccer brand, its ownership of these other brand names establishes it as a truly diversified player in athletic apparel and goods.
The company will also continue to enter new markets, most recently hiring a talented team to begin a plan to enter the outdoor performance apparel market.
Trading Center Want to learn how to invest? Adidas is entrenched in market segments domestically and abroad where it has significant brand loyalty relative to its competition.
Those stock prices would seem to reflect its aggressive growth goals. The company picked up steam in after receiving product placements in two movies, and eventually went public in Nike is dominant across the globe; in particular, it maintains the largest market share in the athletic apparel industry in North America.
It also intends to invest strategically in marketing in growing urban cities across the globe, as the company recognizes the movement of population, particularly younger and more athletic segments of the population, to urban areas.Under Armour has a market capitalization around $ billion and trailing month revenues of $ billion.
The stock ended trading around $80 per share with a P/E ratio of approximately The purpose of this site is to comparatively analyze Nike and Under Armour. Nike Vs Under Armour: Financial Analysis In order to put the financials of these two companies into context, it is worth noting that Under Armour's IPO was incompared to Nike's in Size While Nike and Under Armour sell similar apparel and footwear items, Nike is a far-larger company.
Measured by market cap, it's more than six times Under Armour's size. Key Financial Ratios for Under Armour, Inc.
(UA) - view income statements, balance sheet, cash flow, and key financial ratios for Under Armour, Inc. and all the companies you research at killarney10mile.com Even though Nike’s $ billion market caps trumps that of Under Armour’s of $ billion, Under Armour recently announced growth plans that are giving Nike investors reason to worry.Download