Under Armour (NYSE: UAA) and Lakeland Industries (NASDAQ:LAKE) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, institutional ownership, profitability, dividends, analyst recommendations and valuation.

Analyst Recommendations

This is a summary of recent ratings and target prices for Under Armour and Lakeland Industries, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Under Armour 12 20 5 0 1.81
Lakeland Industries 0 0 1 0 3.00

Under Armour currently has a consensus target price of $19.61, suggesting a potential upside of 20.66%. Lakeland Industries has a consensus target price of $18.00, suggesting a potential upside of 16.13%. Given Under Armour’s higher possible upside, analysts clearly believe Under Armour is more favorable than Lakeland Industries.

Institutional and Insider Ownership

30.5% of Under Armour shares are held by institutional investors. Comparatively, 43.6% of Lakeland Industries shares are held by institutional investors. 16.4% of Under Armour shares are held by insiders. Comparatively, 7.8% of Lakeland Industries shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Under Armour and Lakeland Industries’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Under Armour $4.98 billion 1.44 $526.36 million $0.48 33.85
Lakeland Industries $90.42 million 1.38 $10.08 million $0.82 18.90

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

Risk & Volatility

Under Armour has a beta of -0.02, indicating that its share price is 102% less volatile than the S&P 500. Comparatively, Lakeland Industries has a beta of -0.06, indicating that its share price is 106% less volatile than the S&P 500.

Profitability

This table compares Under Armour and Lakeland Industries’ 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%
Lakeland Industries 6.65% 8.27% 7.02%

Summary

Under Armour beats Lakeland Industries on 9 of the 14 factors compared between the two stocks.

Under Armour Company Profile

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.

Lakeland Industries Company Profile

Lakeland Industries, Inc. (Lakeland) manufactures and sells a line of safety garments and accessories for the industrial and public protective clothing market. The Company’s product categories include limited use/disposable protective clothing; high-end chemical protective suits; firefighting, flame resistant personal protective equipment (FR PPE) and heat protective apparel; reusable woven garments; high visibility clothing, and glove and sleeves. The Company’s products are sold by its in-house customer service group, its regional sales managers and independent sales representatives to a network of over 1,200 North American safety and mill supply distributors. These distributors in turn supply end user industrial customers, such as integrated oil, chemical/petrochemical, utilities, automobile, steel, glass, construction, smelting, munition plants, janitorial, pharmaceutical, mortuaries and high technology electronics manufacturers, as well as scientific and medical laboratories.

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