Under Armour (NYSE: UAA) and Columbia Sportswear (NASDAQ:COLM) are both mid-cap consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, valuation, analyst recommendations, profitability and earnings.

Volatility and Risk

Under Armour has a beta of -0.02, meaning that its share price is 102% less volatile than the S&P 500. Comparatively, Columbia Sportswear has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500.

Dividends

Columbia Sportswear pays an annual dividend of $0.72 per share and has a dividend yield of 1.2%. Under Armour does not pay a dividend. Columbia Sportswear pays out 26.5% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares Under Armour and Columbia Sportswear’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Under Armour $4.98 billion 1.48 $526.36 million $0.48 34.81
Columbia Sportswear $2.41 billion 1.79 $319.52 million $2.72 22.68

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

Profitability

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

Net Margins Return on Equity Return on Assets
Under Armour 4.38% 10.93% 5.91%
Columbia Sportswear 8.01% 12.31% 9.84%

Analyst Recommendations

This is a summary of recent recommendations for Under Armour and Columbia Sportswear, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Under Armour 12 19 5 0 1.81
Columbia Sportswear 0 7 7 0 2.50

Under Armour currently has a consensus price target of $19.93, indicating a potential upside of 19.25%. Columbia Sportswear has a consensus price target of $63.83, indicating a potential upside of 3.46%. Given Under Armour’s higher possible upside, equities analysts clearly believe Under Armour is more favorable than Columbia Sportswear.

Institutional & Insider Ownership

30.5% of Under Armour shares are owned by institutional investors. Comparatively, 38.9% of Columbia Sportswear shares are owned by institutional investors. 16.4% of Under Armour shares are owned by company insiders. Comparatively, 58.9% of Columbia Sportswear shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Columbia Sportswear beats Under Armour on 11 of the 16 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 Columbia Sportswear

Columbia Sportswear Company is an apparel and footwear company. The Company designs, sources, markets and distributes outdoor lifestyle apparel, footwear, accessories and equipment under the Columbia, Mountain Hardwear, Sorel, prAna and other brands. Its geographic segments are the United States, Latin America and Asia Pacific (LAAP), Europe, Middle East and Africa (EMEA), and Canada. The Company develops and manages its merchandise in categories, including apparel, accessories and equipment, and footwear. It distributes its products through a mix of wholesale distribution channels, its own direct-to-consumer channels (retail stores and e-commerce), independent distributors and licensees. As of December 31, 2016, its products were sold in approximately 90 countries. In 59 of those countries, it sells to independent distributors to whom it has granted distribution rights. Contract manufacturers located outside the United States manufacture all of its products.

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