Under Armour (NYSE:UA) versus Crocs (NASDAQ:CROX) Head to Head Comparison

Crocs (NASDAQ:CROX) and Under Armour (NYSE:UA) are both consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitability and institutional ownership.

Insider & Institutional Ownership

93.4% of Crocs shares are owned by institutional investors. Comparatively, 36.3% of Under Armour shares are owned by institutional investors. 3.0% of Crocs shares are owned by insiders. Comparatively, 15.6% of Under Armour shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility and Risk

Crocs has a beta of 1.43, suggesting that its share price is 43% more volatile than the S&P 500. Comparatively, Under Armour has a beta of 1.67, suggesting that its share price is 67% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Crocs	5.72%	44.15%	16.12%
Under Armour	1.99%	7.24%	3.06%

Analyst Ratings

This is a breakdown of current ratings and price targets for Crocs and Under Armour, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Crocs	2	6	7	0	2.33
Under Armour	1	0	0	0	1.00

Crocs currently has a consensus target price of $102.00, indicating a potential upside of 22.89%. Given Crocs’ stronger consensus rating and higher probable upside, research analysts plainly believe Crocs is more favorable than Under Armour.

Valuation and Earnings

This table compares Crocs 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
Crocs	$4.10 billion	1.11	$950.07 million	$3.73	22.25
Under Armour	$5.11 billion	0.39	-$201.27 million	$0.22	20.95

Crocs has higher earnings, but lower revenue than Under Armour. Under Armour is trading at a lower price-to-earnings ratio than Crocs, indicating that it is currently the more affordable of the two stocks.

Summary

Crocs beats Under Armour on 11 of the 14 factors compared between the two stocks.

About Crocs

Crocs, Inc., together with its subsidiaries, designs, develops, manufactures, markets, distributes, and sells casual lifestyle footwear and accessories for men, women, and children under Crocs and HEYDUDE Brand in the United States and internationally. The company offers various footwear products, including clogs, sandals, slides, flips, wedges, platforms, socks, boots, charms, flip flops, sneakers, and slippers. It sells its products through wholesalers, retail stores, e-commerce sites, third-party marketplaces, and kiosks/store-in-store locations. Crocs, Inc. was founded in 1999 and is headquartered in Broomfield, Colorado.

About Under Armour

Under Armour, Inc., together with its subsidiaries, develops, markets, and distributes performance apparel, footwear, and accessories for men, women, and youth. The company provides its apparel in compression, fitted, and loose fit types. It also offers footwear products for running, training, basketball, cleated sports, recovery, and outdoor applications. In addition, the company provides accessories, which include gloves, bags, headwear, and sports masks; and digital subscription, advertising, and other digital business services. It primarily offers its products under the UNDER ARMOUR, HEATGEAR, COLDGEAR, HOVR, UA, PROTECT THIS HOUSE, I WILL, UA Logo, ARMOUR FLEECE, and ARMOUR BRA brands. The company sells its products through wholesale channels, including national and regional sporting goods chains, independent and specialty retailers, department store chains, mono-branded Under Armour retail stores, institutional athletic departments, and leagues and teams, as well as independent distributors; and directly to consumers through a network of 439 Brand and Factory House stores, as well as through e-commerce websites. It operates in the United States, Canada, Europe, the Middle East, Africa, the Asia-Pacific, and Latin America. Under Armour, Inc. was incorporated in 1996 and is headquartered in Baltimore, Maryland.