Critical Comparison: Next (NXGPY) & Under Armour (UA)

Under Armour (NYSE: UA) and Next (OTCMKTS:NXGPY) are both mid-cap consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, earnings, valuation, profitability, analyst recommendations and risk.

Analyst Recommendations

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This is a breakdown of current ratings and recommmendations for Under Armour and Next, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Under Armour 9 10 3 0 1.73
Next 0 0 0 0 N/A

Under Armour presently has a consensus target price of $14.50, suggesting a potential upside of 1.05%. Given Under Armour’s higher possible upside, equities analysts plainly believe Under Armour is more favorable than Next.

Dividends

Next pays an annual dividend of $1.50 per share and has a dividend yield of 4.2%. Under Armour does not pay a dividend. Next pays out 51.2% of its earnings in the form of a dividend.

Profitability

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

Net Margins Return on Equity Return on Assets
Under Armour -0.97% 9.38% 5.23%
Next N/A N/A N/A

Earnings and Valuation

This table compares Under Armour and Next’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Under Armour $4.98 billion 1.28 -$48.26 million N/A N/A
Next $5.48 billion 1.86 $850.24 million $2.93 12.20

Next has higher revenue and earnings than Under Armour.

Institutional and Insider Ownership

32.3% of Under Armour shares are owned by institutional investors. 16.0% of Under Armour shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

Under Armour has a beta of -0.67, suggesting that its stock price is 167% less volatile than the S&P 500. Comparatively, Next has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500.

Summary

Under Armour beats Next on 7 of the 13 factors compared between the two stocks.

About Under Armour

Under Armour, Inc., together with its subsidiaries, develops, markets, and distributes branded performance apparel, footwear, and accessories for men, women, and youth primarily in North America, Europe, the Middle East, Africa, the Asia-Pacific, and Latin America. The company offers its apparel in compression, fitted, and loose types to be worn in hot, cold, and in between the extremes. It also provides various footwear products, including running, basketball, cleated, slides and performance training, and outdoor footwear. In addition, the company offers accessories, which include headwear, bags, and gloves; and digital fitness subscriptions, as well as digital advertising through MapMyFitness, MyFitnessPal, and Endomondo applications. It primarily offers its products under the UA Logo, UNDER ARMOUR, UA, ARMOUR, HEATGEAR, COLDGEAR, ALLSEASONGEAR, PROTECT THIS HOUSE, and I WILL, as well as ARMOURBITE, ARMOURSTORM, ARMOUR FLEECE, ARMOUR BRA, and UNDER ARMOUR CONNECTED FITNESS brands. The company sells its products through wholesale channels, including national and regional sporting goods chains, independent and specialty retailers, department store chains, institutional athletic departments, and leagues and teams, as well as independent distributors; and directly to consumers through a network of brand and factory house stores, and Website. Under Armour, Inc. was founded in 1996 and is headquartered in Baltimore, Maryland.

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