ON (NYSE:ONON) vs. Under Armour (NYSE:UAA) Head to Head Review

ON (NYSE:ONON) and Under Armour (NYSE:UAA) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, institutional ownership, dividends, risk, earnings, analyst recommendations and profitability.

Analyst Ratings

This is a summary of recent ratings for ON and Under Armour, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ON	2	5	18	1	2.69
Under Armour	4	11	1	1	1.94

ON currently has a consensus target price of $44.75, indicating a potential upside of 62.94%. Under Armour has a consensus target price of $5.79, indicating a potential upside of 14.96%. Given ON’s stronger consensus rating and higher probable upside, analysts clearly believe ON is more favorable than Under Armour.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ON	$3.64 billion	4.82	$245.87 million	$1.47	18.68
Under Armour	$4.97 billion	0.44	-$495.64 million	($1.15)	-4.38

ON has higher earnings, but lower revenue than Under Armour. Under Armour is trading at a lower price-to-earnings ratio than ON, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

ON has a beta of 2.08, meaning that its stock price is 108% more volatile than the S&P 500. Comparatively, Under Armour has a beta of 1.62, meaning that its stock price is 62% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ON	12.09%	22.92%	13.33%
Under Armour	-9.99%	4.04%	1.37%

Insider and Institutional Ownership

36.4% of ON shares are held by institutional investors. Comparatively, 34.6% of Under Armour shares are held by institutional investors. 15.7% of Under Armour shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

ON beats Under Armour on 12 of the 14 factors compared between the two stocks.

About ON

On Holding AG engages in the development and distribution of sports products such as footwear, apparel, and accessories for high-performance running, outdoor, all-day activities, and tennis. It sells its products worldwide through independent retailers and global distributors, its own online presence, and its own stores. The company was founded by David Allemann, Olivier Bernhard, and Caspar Coppetti in January 2010 and is headquartered in Zurich, Switzerland.

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.