Comparing Under Armour (UAA) and The Competition

Under Armour (NYSE:UAA) is one of 117 public companies in the “Textiles, Apparel & Luxury Goods” industry, but how does it contrast to its competitors? We will compare Under Armour to related companies based on the strength of its dividends, institutional ownership, profitability, earnings, risk, valuation and analyst recommendations.

Valuation and Earnings

This table compares Under Armour and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Under Armour	$4.97 billion	-$495.64 million	-4.68
Under Armour Competitors	$5.66 billion	$471.75 million	25.07

Under Armour’s competitors have higher revenue and earnings than Under Armour. Under Armour is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a summary of current recommendations and price targets for Under Armour and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Under Armour	3	8	1	1	2.00
Under Armour Competitors	1653	7657	10079	364	2.46

Under Armour currently has a consensus price target of $5.80, indicating a potential upside of 11.56%. As a group, “Textiles, Apparel & Luxury Goods” companies have a potential upside of 11.41%. Given Under Armour’s higher possible upside, analysts plainly believe Under Armour is more favorable than its competitors.

Institutional and Insider Ownership

34.6% of Under Armour shares are owned by institutional investors. Comparatively, 54.5% of shares of all “Textiles, Apparel & Luxury Goods” companies are owned by institutional investors. 15.7% of Under Armour shares are owned by insiders. Comparatively, 15.1% of shares of all “Textiles, Apparel & Luxury Goods” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Under Armour has a beta of 1.58, indicating that its stock price is 58% more volatile than the S&P 500. Comparatively, Under Armour’s competitors have a beta of 0.92, indicating that their average stock price is 8% less volatile than the S&P 500.

Profitability

This table compares Under Armour and its competitors’ 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%
Under Armour Competitors	-3.44%	12.79%	2.74%

Summary

Under Armour competitors beat Under Armour on 9 of the 13 factors compared.

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.