Contrasting Under Armour (UA) & PVH Corp. (PVH)
Under Armour (NYSE: UA) and PVH Corp. (NYSE:PVH) are both mid-cap consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, institutional ownership, profitability, valuation, analyst recommendations, risk and earnings.
Earnings and Valuation
This table compares Under Armour and PVH 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||1.37||$526.36 million||$0.48||32.21|
|PVH Corp.||$8.41 billion||1.17||$1.14 billion||$5.23||24.38|
PVH Corp. has higher revenue and earnings than Under Armour. PVH 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.
PVH Corp. pays an annual dividend of $0.15 per share and has a dividend yield of 0.1%. Under Armour does not pay a dividend. PVH Corp. pays out 2.9% of its earnings in the form of a dividend.
Risk and Volatility
Under Armour has a beta of 1.16, indicating that its share price is 16% more volatile than the S&P 500. Comparatively, PVH Corp. has a beta of 0.46, indicating that its share price is 54% less volatile than the S&P 500.
Institutional and Insider Ownership
30.3% of Under Armour shares are owned by institutional investors. Comparatively, 95.3% of PVH Corp. shares are owned by institutional investors. 16.5% of Under Armour shares are owned by company insiders. Comparatively, 1.3% of PVH Corp. shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
This table compares Under Armour and PVH Corp.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent recommendations and price targets for Under Armour and PVH Corp., as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Under Armour presently has a consensus price target of $18.13, indicating a potential upside of 17.24%. PVH Corp. has a consensus price target of $138.86, indicating a potential upside of 8.88%. Given Under Armour’s higher probable upside, equities analysts plainly believe Under Armour is more favorable than PVH Corp..
PVH Corp. beats Under Armour on 9 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 PVH Corp.
PVH Corp. is an apparel company. The Company operates through three segments: Calvin Klein, which consists of the Calvin Klein North America and Calvin Klein International segments; Tommy Hilfiger, which consists of the Tommy Hilfiger North America and Tommy Hilfiger International segments, and Heritage Brands, which consists of the Heritage Brands Wholesale and Heritage Brands Retail segments. The Company’s brand portfolio consists of various brand names, including Calvin Klein, Tommy Hilfiger, Van Heusen, IZOD, ARROW, Warner’s, Olga and Eagle, which are owned, and Speedo, Geoffrey Beene, Kenneth Cole New York, Kenneth Cole Reaction, Sean John, MICHAEL Michael Kors, Michael Kors Collection and Chaps, which are licensed, as well as various other licensed and private label brands. The Company designs and markets dress shirts, neckwear, sportswear, jeanswear, intimate apparel, swim products and handbags, footwear and other related products.
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