PVH Corp. (NYSE: PVH) and Under Armour (NYSE:UA) are both mid-cap consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, institutional ownership, dividends, analyst recommendations, valuation, profitability and earnings.
Institutional & Insider Ownership
95.3% of PVH Corp. shares are owned by institutional investors. Comparatively, 30.2% of Under Armour shares are owned by institutional investors. 1.3% of PVH Corp. shares are owned by insiders. Comparatively, 16.5% of Under Armour shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This table compares PVH Corp. and Under Armour’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares PVH Corp. and Under Armour’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|PVH Corp.||$8.41 billion||1.16||$1.14 billion||$5.23||24.13|
|Under Armour||$4.98 billion||1.34||$526.36 million||$0.48||31.56|
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.
Volatility & Risk
PVH Corp. has a beta of 0.46, indicating that its stock price is 54% less volatile than the S&P 500. Comparatively, Under Armour has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500.
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.
This is a breakdown of recent ratings and target prices for PVH Corp. and Under Armour, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
PVH Corp. currently has a consensus price target of $138.86, indicating a potential upside of 10.02%. Under Armour has a consensus price target of $18.13, indicating a potential upside of 19.64%. Given Under Armour’s higher probable upside, analysts clearly 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 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.
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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