Critical Survey: Under Armour (NYSE:UA) & Blue (OTCMKTS:BLHI)

Under Armour (NYSE:UA) and Blue (OTCMKTS:BLHI) are both consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, earnings, institutional ownership, profitability and dividends.

Profitability

This table compares Under Armour and Blue’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Under Armour	-9.98%	3.01%	1.05%
Blue	N/A	N/A	N/A

Earnings & Valuation

This table compares Under Armour and Blue”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Under Armour	$4.97 billion	0.50	-$495.64 million	($1.16)	-5.05
Blue	N/A	N/A	N/A	N/A	N/A

Blue has lower revenue, but higher earnings than Under Armour.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Under Armour and Blue, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Under Armour	2	1	0	0	1.33
Blue	0	0	0	0	0.00

Under Armour currently has a consensus target price of $5.50, suggesting a potential downside of 6.06%. Given Blue’s higher probable upside, analysts clearly believe Blue is more favorable than Under Armour.

Insider and Institutional Ownership

36.3% of Under Armour shares are held by institutional investors. 15.6% of Under Armour shares are held by company 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.

Summary

Under Armour beats Blue on 6 of the 8 factors compared between the two stocks.

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.

About Blue

Blue Holdings Inc., directly and through its wholly owned subsidiary Antik Denim, LLC, designs, develops, manufactures, markets, distributes, and sells high-end fashion jeans, apparel, and accessories under the principal brand names Antik Denim, Taverniti So Jeans, Yanuk, and Faith Connexion. Its products include jeans, jackets, belts, purses, and T-shirts. The company sells premium denim products and accessories in high-end department stores and fashion boutiques that cater to fashion conscious consumers. Its products are sold in the United States, Canada, Japan, and the European Union directly to department stores and boutiques, and through distribution arrangements in a various countries. Blue Holdings Inc. was formerly known as Marine Jet Technology Corp. and changed its name to Blue Holdings Inc. in June 2005. The company was incorporated in 2000 and is headquartered in Commerce, California with showrooms in Los Angeles and New York.