Under Armour (NYSE: UAA) and V.F. Corporation (NYSE:VFC) are both mid-cap apparel & accessories – nec companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, valuation, institutional ownership, analyst recommendations, earnings, risk and profitability.

Risk & Volatility

Under Armour has a beta of 0.03, suggesting that its stock price is 97% less volatile than the S&P 500. Comparatively, V.F. Corporation has a beta of 0.8, suggesting that its stock price is 20% less volatile than the S&P 500.

Insider and Institutional Ownership

30.4% of Under Armour shares are held by institutional investors. 16.4% of Under Armour shares are held by insiders. Comparatively, 1.6% of V.F. Corporation shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Under Armour and V.F. Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Under Armour 2.94% 9.32% 5.00%
V.F. Corporation 8.24% 29.22% 12.65%

Dividends

V.F. Corporation pays an annual dividend of $1.68 per share and has a dividend yield of 2.4%. Under Armour does not pay a dividend. V.F. Corporation pays out 69.7% of its earnings in the form of a dividend. V.F. Corporation has raised its dividend for 44 consecutive years.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Under Armour and V.F. Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Under Armour 16 18 4 0 1.68
V.F. Corporation 1 15 5 0 2.19

Under Armour presently has a consensus price target of $16.94, suggesting a potential upside of 29.52%. V.F. Corporation has a consensus price target of $65.72, suggesting a potential downside of 7.19%. Given Under Armour’s higher possible upside, analysts clearly believe Under Armour is more favorable than V.F. Corporation.

Earnings and Valuation

This table compares Under Armour and V.F. Corporation’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Under Armour $4.83 billion 1.19 $256.97 million $0.32 40.88
V.F. Corporation $12.02 billion 2.33 $1.07 billion $2.41 29.38

V.F. Corporation has higher revenue and earnings than Under Armour. V.F. Corporation 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

V.F. Corporation beats Under Armour on 12 of the 17 factors compared between the two stocks.

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.

About V.F. Corporation

V.F. Corporation (VF) is engaged in the design, production, procurement, marketing and distribution of branded lifestyle apparel, footwear and related products. The Company’s segments include Outdoor & Action Sports, Jeanswear, Imagewear and Sportswear. Its Outdoor & Action Sports Coalition is a group of authentic outdoor and activity-based lifestyle brands. Its product offerings include apparel, footwear, equipment, backpacks, luggage and accessories. Its Imagewear coalition consists of the Image business. Its Wrangler brand offers denim, apparel, accessories and footwear through mass merchants, specialty stores and department stores in the United States, VF-operated stores and online at www.wrangler.com. The Sportswear coalition consists of the Nautica and Kipling brand businesses in North America (the Kipling brand outside of North America is managed by the Outdoor & Action Sports coalition).

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