Under Armour (NYSE:UAA – Get Free Report) and Fossil Group (NASDAQ:FOSL – Get Free Report) are both consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, earnings, institutional ownership and profitability.
Risk and Volatility
Under Armour has a beta of 1.62, indicating that its share price is 62% more volatile than the S&P 500. Comparatively, Fossil Group has a beta of 1.55, indicating that its share price is 55% more volatile than the S&P 500.
Analyst Ratings
This is a summary of recent ratings for Under Armour and Fossil Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Under Armour | 4 | 9 | 1 | 1 | 1.93 |
| Fossil Group | 1 | 1 | 3 | 1 | 2.67 |
Under Armour presently has a consensus price target of $5.69, indicating a potential upside of 11.41%. Fossil Group has a consensus price target of $9.25, indicating a potential upside of 33.32%. Given Fossil Group’s stronger consensus rating and higher possible upside, analysts clearly believe Fossil Group is more favorable than Under Armour.
Profitability
This table compares Under Armour and Fossil Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Under Armour | -9.99% | 4.04% | 1.37% |
| Fossil Group | -7.09% | -59.76% | -7.53% |
Insider and Institutional Ownership
34.6% of Under Armour shares are owned by institutional investors. Comparatively, 61.1% of Fossil Group shares are owned by institutional investors. 15.7% of Under Armour shares are owned by company insiders. Comparatively, 3.8% of Fossil Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Earnings & Valuation
This table compares Under Armour and Fossil Group”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Under Armour | $4.97 billion | 0.44 | -$495.64 million | ($1.15) | -4.44 |
| Fossil Group | $1.00 billion | 0.41 | -$78.30 million | ($1.28) | -5.42 |
Fossil Group has lower revenue, but higher earnings than Under Armour. Fossil Group 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 Fossil Group on 8 of the 14 factors compared between the two stocks.
About Under Armour
Under Armour, Inc., together with its subsidiaries, engages developing, marketing, and distributing performance apparel, footwear, and accessories for men, women, and youth. The company provides its apparel in compression, fitted, and loose fit types. It also offers footwear products for running, training, basketball, cleated sports, recovery, and outdoor applications. In addition, the company provides accessories, which include gloves, bags, headwear, and socks; and engages in brand licensing, digital subscription, advertising, and other digital business activities. It primarily offers its products under the UNDER ARMOUR, ARMOUR, HEATGEAR, COLDGEAR, HOVR, UA, PROTECT THIS HOUSE, I WILL, ARMOUR FLEECE, and ARMOUR BRA brands. The company sells its products through wholesale channels, including national and regional sporting goods chains, independent and specialty retailers, department store chains, mono-branded Under Armour retail stores, institutional athletic departments, and leagues and teams, as well as independent distributors; and directly to consumers through Brand and Factory House stores, as well as through e-commerce websites. It operates in the United States, Canada, Europe, the Middle East, Africa, the Asia-Pacific, and Latin America. The company was incorporated in 1996 and is headquartered in Baltimore, Maryland.
About Fossil Group
Fossil Group, Inc., together with its subsidiaries, designs, develops, markets, and distributes consumer fashion accessories in the United States, Europe, Asia, and internationally. The company’s products include traditional watches, smartwatches, jewelry, handbags, small leather goods, belts, and sunglasses. It also manufactures and distributes private label brands, as well as branded products purchased for resell in other branded retail stores. The company offers its products under its proprietary brands, such as FOSSIL, SKAGEN, MICHELE, RELIC, and ZODIAC; and under the licensed brands, including ARMANI EXCHANGE, DIESEL, DKNY, EMPORIO ARMANI, KATE SPADE NEW YORK, MICHAEL KORS, TORY BURCH, and Skechers. The company sells its products through company-owned retail and outlet stores, department and specialty retail stores, mass market stores, e-commerce sites, licensed and franchised FOSSIL retail stores, and retail concessions, as well as sells its products on airlines. The company was formerly known as Fossil, Inc. and changed its name to Fossil Group, Inc. in May 2013. Fossil Group, Inc. was founded in 1984 and is headquartered in Richardson, Texas.
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