V.F. Corporation (NYSE: VFC) and Under Armour (NYSE:UA) are both mid-cap consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, earnings, risk, valuation and dividends.

Profitability

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

Net Margins Return on Equity Return on Assets
V.F. Corporation 9.23% 27.44% 12.68%
Under Armour 4.38% 11.06% 5.96%

Earnings and Valuation

This table compares V.F. Corporation and Under Armour’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
V.F. Corporation $12.01 billion 2.06 $1.87 billion $2.59 24.28
Under Armour $4.98 billion 1.42 $526.36 million $0.48 33.29

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

Risk & Volatility

V.F. Corporation has a beta of 0.78, indicating that its stock price is 22% less volatile than the S&P 500. Comparatively, Under Armour has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for V.F. Corporation and Under Armour, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
V.F. Corporation 1 14 5 0 2.20
Under Armour 6 10 3 0 1.84

V.F. Corporation presently has a consensus target price of $60.24, suggesting a potential downside of 4.22%. Under Armour has a consensus target price of $18.67, suggesting a potential upside of 16.81%. Given Under Armour’s higher probable upside, analysts plainly believe Under Armour is more favorable than V.F. Corporation.

Dividends

V.F. Corporation pays an annual dividend of $1.68 per share and has a dividend yield of 2.7%. Under Armour does not pay a dividend. V.F. Corporation pays out 64.9% of its earnings in the form of a dividend. V.F. Corporation has increased its dividend for 44 consecutive years.

Institutional and Insider Ownership

89.1% of V.F. Corporation shares are held by institutional investors. Comparatively, 31.0% of Under Armour shares are held by institutional investors. 1.6% of V.F. Corporation shares are held by company insiders. Comparatively, 16.5% of Under Armour shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

V.F. Corporation beats Under Armour on 12 of the 17 factors compared between the two stocks.

About V.F. Corporation

V.F. Corporation (VF) is engaged in the design, production, procurement, marketing and distribution of branded lifestyle apparel, footwear and related products. The Company’s segments include Outdoor & Action Sports, Jeanswear, Imagewear and Sportswear. Its Outdoor & Action Sports Coalition is a group of authentic outdoor and activity-based lifestyle brands. Its product offerings include apparel, footwear, equipment, backpacks, luggage and accessories. Its Imagewear coalition consists of the Image business. Its Wrangler brand offers denim, apparel, accessories and footwear through mass merchants, specialty stores and department stores in the United States, VF-operated stores and online at www.wrangler.com. The Sportswear coalition consists of the Nautica and Kipling brand businesses in North America (the Kipling brand outside of North America is managed by the Outdoor & Action Sports coalition).

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.

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