G-III Apparel Group, LTD. (NASDAQ: GIII) and Under Armour (NYSE:UAA) are both consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, dividends, risk, analyst recommendations, institutional ownership, valuation and earnings.

Profitability

This table compares G-III Apparel Group, LTD. and Under Armour’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
G-III Apparel Group, LTD. 1.58% 5.57% 3.44%
Under Armour 4.38% 10.93% 5.91%

Analyst Ratings

This is a breakdown of current recommendations and price targets for G-III Apparel Group, LTD. and Under Armour, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
G-III Apparel Group, LTD. 0 4 6 0 2.60
Under Armour 10 21 6 0 1.89

G-III Apparel Group, LTD. currently has a consensus price target of $29.89, suggesting a potential upside of 10.82%. Under Armour has a consensus price target of $23.54, suggesting a potential upside of 43.28%. Given Under Armour’s higher probable upside, analysts clearly believe Under Armour is more favorable than G-III Apparel Group, LTD..

Risk & Volatility

G-III Apparel Group, LTD. has a beta of 0.33, suggesting that its stock price is 67% less volatile than the S&P 500. Comparatively, Under Armour has a beta of -0.07, suggesting that its stock price is 107% less volatile than the S&P 500.

Insider and Institutional Ownership

99.4% of G-III Apparel Group, LTD. shares are owned by institutional investors. Comparatively, 30.5% of Under Armour shares are owned by institutional investors. 9.7% of G-III Apparel Group, LTD. shares are owned by insiders. Comparatively, 16.4% of Under Armour shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares G-III Apparel Group, LTD. and Under Armour’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
G-III Apparel Group, LTD. $2.46 billion 0.53 $136.11 million $0.84 32.11
Under Armour $4.98 billion 1.45 $526.36 million $0.48 34.23

Under Armour has higher revenue and earnings than G-III Apparel Group, LTD.. G-III Apparel Group, LTD. is trading at a lower price-to-earnings ratio than Under Armour, indicating that it is currently the more affordable of the two stocks.

Summary

Under Armour beats G-III Apparel Group, LTD. on 9 of the 13 factors compared between the two stocks.

About G-III Apparel Group, LTD.

G-III Apparel Group, Ltd. designs, manufactures and markets a range of apparel products. The Company operates through two segments: wholesale operations and retail operations. Its apparel products include outerwear, dresses, sportswear, swimwear, women’s suits and women’s performance wear, as well as women’s handbags, footwear, small leather goods, cold weather accessories and luggage. The Company’s owned brands include Donna Karan, DKNY, DKNY Jeans, Vilebrequin, G-III Sports by Carl Banks, Eliza J, Black Rivet and Jessica Howard. It has fashion licenses under the Calvin Klein, Tommy Hilfiger, Karl Lagerfeld, Kenneth Cole, Cole Haan and Dockers brands. Through its team sports business, it has licenses with the National Football League, National Basketball Association, Major League Baseball and National Hockey League. It also operates retail stores under the Donna Karan, Wilsons Leather, Bass, G.H. Bass & Co., Vilebrequin and Calvin Klein Performance names.

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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