Amer Sports (AS) versus Its Rivals Critical Review

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

Risk and Volatility

Amer Sports has a beta of 1.97, suggesting that its share price is 97% more volatile than the S&P 500. Comparatively, Amer Sports’ rivals have a beta of 0.92, suggesting that their average share price is 8% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Amer Sports and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Amer Sports	0	3	13	1	2.88
Amer Sports Competitors	1654	7658	10079	364	2.46

Amer Sports presently has a consensus price target of $44.67, suggesting a potential upside of 40.40%. As a group, “Textiles, Apparel & Luxury Goods” companies have a potential upside of 11.02%. Given Amer Sports’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Amer Sports is more favorable than its rivals.

Profitability

This table compares Amer Sports and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Amer Sports	7.35%	11.18%	7.02%
Amer Sports Competitors	-3.37%	12.95%	2.77%

Valuation and Earnings

This table compares Amer Sports and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Amer Sports	$7.44 billion	$427.40 million	33.49
Amer Sports Competitors	$5.67 billion	$471.75 million	25.19

Amer Sports has higher revenue, but lower earnings than its rivals. Amer Sports is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Institutional & Insider Ownership

40.3% of Amer Sports shares are held by institutional investors. Comparatively, 54.5% of shares of all “Textiles, Apparel & Luxury Goods” companies are held by institutional investors. 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, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Amer Sports beats its rivals on 9 of the 13 factors compared.

Amer Sports Company Profile

Amer Sports is a global sporting goods company whose portfolio includes Arc’teryx, Salomon, Wilson, Atomic, Peak Performance and other brands. Its products span technical apparel and footwear, outdoor and winter sports equipment, and gear for sports such as tennis, baseball and basketball. The company serves consumers and athletes in markets around the world through its brands’ retail, wholesale and direct-to-consumer channels. Its operations are organized around technical apparel, outdoor performance, and ball and racquet sports.