Head-To-Head Comparison: Under Armour (UA) vs. The Competition

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

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Under Armour	$4.97 billion	-$495.64 million	-4.69
Under Armour Competitors	$5.66 billion	$471.75 million	24.96

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

Volatility and Risk

Under Armour has a beta of 1.51, indicating that its stock price is 51% more volatile than the S&P 500. Comparatively, Under Armour’s peers have a beta of 0.91, indicating that their average stock price is 9% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for Under Armour and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Under Armour	2	1	0	0	1.33
Under Armour Competitors	1651	7643	10065	362	2.46

Under Armour presently has a consensus price target of $5.50, indicating a potential upside of 1.95%. As a group, “Textiles, Apparel & Luxury Goods” companies have a potential upside of 12.36%. Given Under Armour’s peers stronger consensus rating and higher probable upside, analysts plainly believe Under Armour has less favorable growth aspects than its peers.

Insider and Institutional Ownership

36.3% of Under Armour shares are owned by institutional investors. Comparatively, 54.0% of shares of all “Textiles, Apparel & Luxury Goods” companies are owned by institutional investors. 15.6% of Under Armour shares are owned by company insiders. Comparatively, 16.2% of shares of all “Textiles, Apparel & Luxury Goods” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Under Armour and its peers’ 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	-3.42%	12.82%	2.74%

Summary

Under Armour peers beat Under Armour on 12 of the 13 factors compared.

About Under Armour

Under Armour, Inc., together with its subsidiaries, develops, markets, and distributes 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 sports masks; and digital subscription, advertising, and other digital business services. It primarily offers its products under the UNDER ARMOUR, HEATGEAR, COLDGEAR, HOVR, UA, PROTECT THIS HOUSE, I WILL, UA Logo, 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 a network of 439 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. Under Armour, Inc. was incorporated in 1996 and is headquartered in Baltimore, Maryland.