Under Armour (NYSE:UAA) versus Wacoal (OTCMKTS:WACLY) Financial Contrast

Under Armour (NYSE:UAA) and Wacoal (OTCMKTS:WACLY) are both consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, risk, earnings, institutional ownership, analyst recommendations and valuation.

Institutional and Insider Ownership

34.6% of Under Armour shares are owned by institutional investors. 15.6% of Under Armour shares are owned by company insiders. Comparatively, 0.8% of Wacoal shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and recommmendations for Under Armour and Wacoal, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Under Armour	2	12	4	0	2.11
Wacoal	0	0	0	0	0.00

Under Armour presently has a consensus price target of $7.33, suggesting a potential upside of 6.38%. Given Under Armour’s stronger consensus rating and higher possible upside, equities analysts plainly believe Under Armour is more favorable than Wacoal.

Risk & Volatility

Under Armour has a beta of 1.63, meaning that its share price is 63% more volatile than the S&P 500. Comparatively, Wacoal has a beta of -0.07, meaning that its share price is 107% less volatile than the S&P 500.

Earnings and Valuation

This table compares Under Armour and Wacoal”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Under Armour	$5.16 billion	0.57	-$201.27 million	($0.47)	-14.65
Wacoal	$1.14 billion	1.51	$46.13 million	$4.29	38.81

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Under Armour	-3.90%	7.04%	2.95%
Wacoal	4.06%	3.39%	2.48%

Summary

Under Armour beats Wacoal on 9 of the 14 factors compared between the two stocks.

About Under Armour

Under Armour, Inc., together with its subsidiaries, engages developing, marketing, and distributing 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 socks; and engages in brand licensing, digital subscription, advertising, and other digital business activities. It primarily offers its products under the UNDER ARMOUR, ARMOUR, HEATGEAR, COLDGEAR, HOVR, UA, PROTECT THIS HOUSE, I WILL, 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 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. The company was incorporated in 1996 and is headquartered in Baltimore, Maryland.

About Wacoal

Wacoal Holdings Corp. engages in the manufacturing, wholesale, and retail sale of intimate apparel, outerwear, sportswear, and other textile products and accessories in Japan, Asia, Oceania, the United States, and Europe. The company operates through Wacoal Business (Domestic), Wacoal Business (Overseas), Peach John Business, and Other Businesses segments. It offers intimate apparel mainly women’s foundation wear, lingerie, nightwear and children’s underwear; and outerwear, sportswear, and other textile products and accessories. The company also engages in the restaurant, cultural and service-related businesses; and manufacture and sale of mannequins and fixtures, interior design work, and other textile-related businesses. It offers products through department stores, general merchandisers, and other general retailers in Japan, as well as directly managed retail stores, E-commerce websites, and distributors in Japan and internationally. Wacoal Holdings Corp. was founded in 1946 and is headquartered in Kyoto, Japan.