Under Armour Inc Class A (NYSE: UAA) and Li-Ning (OTCMKTS:LNNGY) are both mid-cap consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, dividends, risk, earnings, analyst recommendations, valuation and profitability.

Analyst Ratings

This is a breakdown of recent recommendations for Under Armour Inc Class A and Li-Ning, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Under Armour Inc Class A 14 14 3 0 1.65
Li-Ning 0 0 0 0 N/A

Under Armour Inc Class A currently has a consensus target price of $14.32, indicating a potential downside of 31.48%. Given Under Armour Inc Class A’s higher possible upside, equities analysts clearly believe Under Armour Inc Class A is more favorable than Li-Ning.

Valuation & Earnings

This table compares Under Armour Inc Class A and Li-Ning’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Under Armour Inc Class A $4.98 billion 1.87 -$48.26 million $0.19 110.00
Li-Ning $1.31 billion 1.91 $76.24 million N/A N/A

Li-Ning has lower revenue, but higher earnings than Under Armour Inc Class A.

Risk and Volatility

Under Armour Inc Class A has a beta of -0.26, indicating that its share price is 126% less volatile than the S&P 500. Comparatively, Li-Ning has a beta of -0.81, indicating that its share price is 181% less volatile than the S&P 500.

Institutional and Insider Ownership

38.2% of Under Armour Inc Class A shares are owned by institutional investors. 16.4% of Under Armour Inc Class A shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Under Armour Inc Class A and Li-Ning’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Under Armour Inc Class A -1.51% 4.32% 2.16%
Li-Ning N/A N/A N/A

Summary

Under Armour Inc Class A beats Li-Ning on 8 of the 11 factors compared between the two stocks.

Under Armour Inc Class A Company Profile

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.

Li-Ning Company Profile

Li Ning Company Limited engages in the research, development, design, manufacture, marketing, distribution, and retail of sporting goods in the People's Republic of China. The company offers sporting goods, including footwear, apparel, equipment, and accessories for professional and leisure purposes primarily under the LI-NING brand. It also develops, manufactures, markets, distributes, and/or sells outdoor sports products under the AIGLE brand; fashionable fitness products for dance and yoga under the Danskin brand; and sports fashion products under the Lotto brand, as well as badminton equipment under the Kason brand. As of December 31, 2016, the company operated 6,440 LI-NING brand conventional stores, flagship stores, factory outlets, and discount stores. Li Ning Company Limited was incorporated in 2004 and is headquartered in Beijing, the People's Republic of China.

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