Head-To-Head Comparison: Under Armour (UA) versus Its Competitors

Under Armour (NYSE:UA) is one of 117 public companies in the “Textiles, Apparel & Luxury Goods” industry, but how does it contrast to its competitors? We will compare Under Armour to similar businesses based on the strength of its profitability, institutional ownership, valuation, dividends, analyst recommendations, risk and earnings.

Volatility and Risk

Under Armour has a beta of 1.51, meaning that its stock price is 51% more volatile than the S&P 500. Comparatively, Under Armour’s competitors 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 competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Under Armour	-9.80%	3.12%	1.05%
Under Armour Competitors	-3.21%	14.02%	2.94%

Valuation and Earnings

This table compares Under Armour and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Under Armour	$4.97 billion	-$495.64 million	-4.32
Under Armour Competitors	$5.68 billion	$471.75 million	24.07

Under Armour’s competitors have higher revenue and earnings than Under Armour. Under Armour is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Insider and Institutional Ownership

36.3% of Under Armour shares are owned by institutional investors. Comparatively, 54.1% of shares of all “Textiles, Apparel & Luxury Goods” companies are owned by institutional investors. 15.6% of Under Armour shares are owned by insiders. Comparatively, 16.1% of shares of all “Textiles, Apparel & Luxury Goods” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Under Armour and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Under Armour	2	1	0	0	1.33
Under Armour Competitors	1657	7664	10087	365	2.46

Under Armour presently has a consensus target price of $5.50, suggesting a potential upside of 14.70%. As a group, “Textiles, Apparel & Luxury Goods” companies have a potential upside of 9.77%. Given Under Armour’s higher probable upside, research analysts clearly believe Under Armour is more favorable than its competitors.

Summary

Under Armour competitors beat Under Armour on 11 of the 13 factors compared.

Under Armour Company Profile

Under Armour, Inc. develops, markets and distributes performance apparel, footwear and accessories for athletes and consumers. Its products include training and running apparel, athletic shoes, sports bras and accessories such as bags and headwear. Founded in 1996 by Kevin Plank, the company is headquartered in Baltimore, Maryland. Under Armour sells its products internationally through wholesale partners, company-operated stores and e-commerce channels.