Yue Yuen Industrial (OTCMKTS:YUEIY) versus NIKE (NYSE:NKE) Head to Head Contrast

Yue Yuen Industrial (OTCMKTS:YUEIY) and NIKE (NYSE:NKE) are both consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, earnings, institutional ownership, profitability and dividends.

Volatility and Risk

Yue Yuen Industrial has a beta of 0.7, meaning that its share price is 30% less volatile than the S&P 500. Comparatively, NIKE has a beta of 1.29, meaning that its share price is 29% more volatile than the S&P 500.

Profitability

This table compares Yue Yuen Industrial and NIKE’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Yue Yuen Industrial	N/A	N/A	N/A
NIKE	6.23%	21.16%	7.74%

Earnings and Valuation

This table compares Yue Yuen Industrial and NIKE”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Yue Yuen Industrial	$8.18 billion	0.38	$392.42 million	N/A	N/A
NIKE	$46.44 billion	1.98	$3.22 billion	$1.95	31.87

NIKE has higher revenue and earnings than Yue Yuen Industrial.

Insider & Institutional Ownership

0.1% of Yue Yuen Industrial shares are held by institutional investors. Comparatively, 64.3% of NIKE shares are held by institutional investors. 0.8% of NIKE shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Dividends

Yue Yuen Industrial pays an annual dividend of $0.41 per share and has a dividend yield of 4.2%. NIKE pays an annual dividend of $1.60 per share and has a dividend yield of 2.6%. NIKE pays out 82.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. NIKE has raised its dividend for 22 consecutive years.

Analyst Ratings

This is a breakdown of current recommendations for Yue Yuen Industrial and NIKE, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Yue Yuen Industrial	0	0	0	0	0.00
NIKE	0	8	25	3	2.86

NIKE has a consensus target price of $82.21, indicating a potential upside of 32.29%. Given NIKE’s stronger consensus rating and higher probable upside, analysts clearly believe NIKE is more favorable than Yue Yuen Industrial.

Summary

NIKE beats Yue Yuen Industrial on 14 of the 16 factors compared between the two stocks.

About Yue Yuen Industrial

Yue Yuen Industrial (Holdings) Limited, an investment holding company, manufactures and sells athletic, athleisure, casual, and outdoor footwear in the People’s Republic of China, rest of Asia, the United States, Europe, and internationally. The company operates as an original design manufacturer/original equipment manufacturer for various international brand names, such as adidas, Asics, New Balance, Nike, Salomon, and Timberland. It retails sportswear, outdoor, and leisure products; and operates a sport service platform, which includes events, venues, media, broadcasting, shopping, activities, registration, ticketing, and other sports-related services online and offline for event sponsorship, promotions, sports center operations, and design services. In addition, the company provides commercial spaces to retailers and distributors; and corporate management consultation services. Further, it trades in footwear. The company was founded in 1969 and is headquartered in Kwun Tong, Hong Kong.

About NIKE

NIKE, Inc., together with its subsidiaries, designs, develops, markets, and sells athletic footwear, apparel, equipment, accessories, and services worldwide. The company provides athletic and casual footwear, apparel, and accessories under the Jumpman trademark; and casual sneakers, apparel, and accessories under the Converse, Chuck Taylor, All Star, One Star, Star Chevron, and Jack Purcell trademarks. It also sells a line of performance equipment and accessories comprising bags, sport balls, socks, eyewear, timepieces, digital devices, bats, gloves, protective equipment, and other equipment for sports activities under the NIKE brand; and various plastic products to other manufacturers. In addition, the company markets apparel with licensed college and professional team, and league logos, as well as sells sports apparel; and licenses unaffiliated parties to manufacture and sell apparel, digital devices, and applications and other equipment for sports activities under NIKE-owned trademarks. It sells its products to footwear stores; sporting goods stores; athletic specialty stores; department stores; skate, tennis, and golf shops; and other retail accounts through NIKE-owned retail stores, digital platforms, independent distributors, licensees, and sales representatives. NIKE, Inc. was founded in 1964 and is headquartered in Beaverton, Oregon.