Analyzing Under Armour (UAA) & The Competition

Under Armour (NYSE:UAA) 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 risk, analyst recommendations, dividends, earnings, valuation, profitability and institutional ownership.

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	-4.68
Under Armour Competitors	$5.66 billion	$471.75 million	25.07

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.

Risk and Volatility

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

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	-3.44%	12.79%	2.74%

Analyst Ratings

This is a breakdown of recent recommendations for Under Armour and its peers, 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 presently has a consensus target price of $5.80, suggesting 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 peers.

Insider & Institutional Ownership

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

Summary

Under Armour peers 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.