Sequential Brands Group (SQBG) vs. Under Armour (UAA) Financial Contrast

Sequential Brands Group (NASDAQ: SQBG) and Under Armour (NYSE:UAA) are both consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, institutional ownership, earnings, risk and profitability.

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sequential Brands Group 0 4 2 0 2.33
Under Armour 14 14 3 0 1.65

Sequential Brands Group currently has a consensus target price of $4.80, indicating a potential upside of 163.01%. Under Armour has a consensus target price of $14.32, indicating a potential downside of 29.74%. Given Sequential Brands Group’s stronger consensus rating and higher probable upside, equities analysts clearly believe Sequential Brands Group is more favorable than Under Armour.

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sequential Brands Group $167.46 million 0.69 -$185.71 million $0.44 4.15
Under Armour $4.98 billion 1.81 -$48.26 million $0.19 107.26

Under Armour has higher revenue and earnings than Sequential Brands Group. Sequential Brands Group 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 Sequential Brands Group and Under Armour’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sequential Brands Group -112.42% 5.81% 2.05%
Under Armour -1.51% 4.32% 2.16%

Risk & Volatility

Sequential Brands Group has a beta of -0.3, meaning that its share price is 130% less volatile than the S&P 500. Comparatively, Under Armour has a beta of -0.26, meaning that its share price is 126% less volatile than the S&P 500.

Institutional and Insider Ownership

45.4% of Sequential Brands Group shares are held by institutional investors. Comparatively, 33.2% of Under Armour shares are held by institutional investors. 27.3% of Sequential Brands Group shares are held by company insiders. Comparatively, 16.4% 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

Under Armour beats Sequential Brands Group on 8 of the 14 factors compared between the two stocks.

About Sequential Brands Group

Sequential Brands Group, Inc. owns, promotes, markets, and licenses a portfolio of consumer brands in the United States and internationally. It offers products in the apparel, footwear, eyewear, fashion accessories, and home goods categories under the Jessica Simpson, AND1, Avia, GAIAM, Joe's Jeans, Ellen Tracy, Emeril Lagasse, William Rast, Heelys, Revo, Caribbean Joe, DVS, The Franklin Mint, Linens N Things, SPRI, Nevados, and FUL brand names; and food, wine, magazines, books, and other print and digital content categories under the Martha Stewart brand name. The company licenses its brands through various distribution channels to retailers, wholesalers, and distributors. Sequential Brands Group, Inc. was incorporated in 1982 and is headquartered in New York, New York.

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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