Head to Head Analysis: Next (NXGPY) & Under Armour (UA)

Next (OTCMKTS: NXGPY) and Under Armour (NYSE:UA) are both retail/wholesale companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, institutional ownership, risk and profitability.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Next $5.48 billion 1.92 $850.24 million $2.93 12.62
Under Armour $4.98 billion 1.24 -$48.26 million N/A N/A

Next has higher revenue and earnings than Under Armour.

Profitability

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

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

Volatility and Risk

Next has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500. Comparatively, Under Armour has a beta of -0.68, suggesting that its stock price is 168% less volatile than the S&P 500.

Insider and Institutional Ownership

32.3% of Under Armour shares are held by institutional investors. 16.0% 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 company will outperform the market over the long term.

Dividends

Next pays an annual dividend of $1.50 per share and has a dividend yield of 4.1%. Under Armour does not pay a dividend. Next pays out 51.2% of its earnings in the form of a dividend.

Analyst Ratings

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

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

Under Armour has a consensus price target of $14.50, suggesting a potential upside of 3.65%. Given Under Armour’s higher possible upside, analysts clearly believe Under Armour is more favorable than Next.

Summary

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

Next Company Profile

NEXT plc engages in the retail of clothing, footwear, accessories, and home products for men, women, and children in the United Kingdom, rest of Europe, the Middle East, Asia, and internationally. The company operates a chain of approximately 540 stores under the name NEXT Retail in the United Kingdom and Eire. It also offers products through NEXT Directory, an online and catalogue shopping business with approximately 4.5 million active customers, as well as international Websites serving approximately 70 countries. In addition, the company operates approximately 200 franchised stores under the NEXT International Retail name worldwide; and designs and sources NEXT branded products, as well as designs and sells younger women's fashion products under Lipsy brand name. Further, it provides property management services, including holding and lease of properties. The company was formerly known as J Hepworth & Son and changed its name to NEXT plc in 1986. NEXT plc was founded in 1864 and is headquartered in Enderby, the United Kingdom.

Under Armour 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.

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