Analyzing Under Armour (UA) and Tumi (TUMI)
Under Armour (NYSE: UA) and Tumi (NYSE:TUMI) are both cyclical consumer goods & services companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, earnings, analyst recommendations, dividends, profitability, institutional ownership and valuation.
Insider & Institutional Ownership
31.8% of Under Armour shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
This table compares Under Armour and Tumi’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent ratings and recommmendations for Under Armour and Tumi, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Under Armour currently has a consensus target price of $16.05, indicating a potential upside of 15.16%. Given Under Armour’s higher possible upside, equities analysts plainly believe Under Armour is more favorable than Tumi.
Valuation & Earnings
This table compares Under Armour and Tumi’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Under Armour||$4.83 billion||1.28||$256.97 million||$0.32||43.56|
Under Armour has higher revenue and earnings than Tumi. Tumi is trading at a lower price-to-earnings ratio than Under Armour, indicating that it is currently the more affordable of the two stocks.
Under Armour beats Tumi on 5 of the 9 factors compared between the two stocks.
Under Armour Company Profile
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.
Tumi Company Profile
Tumi Holdings, Inc. (Tumi) offers a line of travel and business products and accessories in multiple categories. The Company operates through four segments: Direct-to-Consumer North America, which sells its products directly to consumers through a network of approximately 150 company-owned retail stores consisting of full-price stores and outlet stores; Direct-to-Consumer International, which sells its products directly to consumers through a network of over 20 company-owned full-price and outlet stores in street venues and select malls in international locations; Indirect-to-Consumer North America, which sells its products to wholesale customers in North America through approximately 800 doors, including specialty luggage retailers, prestige department stores and business-to-business channels, and Indirect-to-Consumer International, which sells its products to international wholesale customers through approximately 1,000 doors.
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