Analyzing Under Armour (UA) and Vince Holding Corp. (NYSE:VNCE)
Under Armour (NYSE: UA) and Vince Holding Corp. (NYSE:VNCE) are both consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, risk, dividends, valuation, earnings, institutional ownership and profitability.
This table compares Under Armour and Vince Holding Corp.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Vince Holding Corp.||-65.75%||-24.26%||-4.82%|
This is a summary of recent ratings for Under Armour and Vince Holding Corp., as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Vince Holding Corp.||0||2||2||0||2.50|
Under Armour currently has a consensus price target of $18.79, indicating a potential upside of 11.82%. Vince Holding Corp. has a consensus price target of $3.88, indicating a potential upside of 675.00%. Given Vince Holding Corp.’s stronger consensus rating and higher possible upside, analysts clearly believe Vince Holding Corp. is more favorable than Under Armour.
Earnings and Valuation
This table compares Under Armour and Vince Holding Corp.’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Under Armour||$4.98 billion||1.49||$526.36 million||$0.48||35.00|
|Vince Holding Corp.||$258.60 million||0.10||$1.97 million||($3.44)||-0.15|
Under Armour has higher revenue and earnings than Vince Holding Corp.. Vince Holding Corp. is trading at a lower price-to-earnings ratio than Under Armour, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
56.3% of Under Armour shares are owned by institutional investors. Comparatively, 24.4% of Vince Holding Corp. shares are owned by institutional investors. 16.5% of Under Armour shares are owned by insiders. Comparatively, 56.5% of Vince Holding Corp. shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Risk & Volatility
Under Armour has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500. Comparatively, Vince Holding Corp. has a beta of 1.82, meaning that its share price is 82% more volatile than the S&P 500.
Under Armour beats Vince Holding Corp. on 9 of the 13 factors compared between the two stocks.
About Under Armour
Under Armour, Inc. is engaged in the development, marketing and distribution of branded performance apparel, footwear and accessories for men, women and youth. The Company’s segments include North America, consisting of the United States and Canada; Europe, the Middle East and Africa (EMEA); Asia-Pacific; Latin America, and Connected Fitness. Its products are sold across the world and worn by athletes at all levels, from youth to professional, on playing fields around the globe, as well as by consumers with active lifestyles. The Company sells its branded apparel, footwear and accessories in North America through its wholesale and direct to consumer channels. As of December 31, 2016, the Company had approximately 151 factory house stores in North America primarily located in outlet centers throughout the United States. In addition, the Company distributes its products in North America through third-party logistics providers with primary locations in Canada, New Jersey and Florida.
About Vince Holding Corp.
Vince Holding Corp. (Vince) is a United States-based company, which offers a range of women’s and men’s apparel, women’s and men’s footwear, and handbags. The Company operates as a fashion brand. The Company operates in two segments: Wholesale and Direct-to-consumer. The Company’s Wholesale segment consists of its operations to distribute products to various department stores and specialty stores in the United States and select international markets. The Company’s Direct-to-consumer segment consists of its operations to distribute products directly to the consumer through its branded specialty retail stores, outlet stores and e-commerce platform. The Company utilizes luxe fabrications and various techniques to create its product assortment. The Company serves its customers through various channels, including wholesale department stores and specialty stores in the United States, as well as through its branded retail locations and its Website.
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