Comparing NIKE (NYSE:NKE) & Canada Goose (NYSE:GOOS)

NIKE (NYSE:NKE) and Canada Goose (NYSE:GOOS) are both consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, analyst recommendations and risk.

Risk & Volatility

NIKE has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500. Comparatively, Canada Goose has a beta of 1.62, suggesting that its share price is 62% more volatile than the S&P 500.

Earnings & Valuation

This table compares NIKE and Canada Goose”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NIKE	$46.40 billion	1.32	$3.11 billion	$2.09	19.76
Canada Goose	$1.11 billion	0.77	$16.29 million	$0.39	22.42

NIKE has higher revenue and earnings than Canada Goose. NIKE is trading at a lower price-to-earnings ratio than Canada Goose, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

64.2% of NIKE shares are held by institutional investors. Comparatively, 83.6% of Canada Goose shares are held by institutional investors. 1.1% of NIKE shares are held by company insiders. Comparatively, 0.5% of Canada Goose shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings for NIKE and Canada Goose, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NIKE	5	18	13	1	2.27
Canada Goose	5	3	1	0	1.56

NIKE presently has a consensus price target of $53.53, indicating a potential upside of 29.65%. Canada Goose has a consensus price target of $11.78, indicating a potential upside of 34.73%. Given Canada Goose’s higher possible upside, analysts clearly believe Canada Goose is more favorable than NIKE.

Profitability

This table compares NIKE and Canada Goose’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NIKE	6.70%	16.54%	6.21%
Canada Goose	3.65%	14.28%	4.56%

Summary

NIKE beats Canada Goose on 11 of the 15 factors compared between the two stocks.

About NIKE

NIKE, Inc., together with its subsidiaries, designs, develops, markets, and sells athletic footwear, apparel, equipment, accessories, and services worldwide. The company provides athletic and casual footwear, apparel, and accessories under the Jumpman trademark; and casual sneakers, apparel, and accessories under the Converse, Chuck Taylor, All Star, One Star, Star Chevron, and Jack Purcell trademarks. It also sells a line of performance equipment and accessories comprising bags, sport balls, socks, eyewear, timepieces, digital devices, bats, gloves, protective equipment, and other equipment for sports activities under the NIKE brand; and various plastic products to other manufacturers. In addition, the company markets apparel with licensed college and professional team, and league logos, as well as sells sports apparel; and licenses unaffiliated parties to manufacture and sell apparel, digital devices, and applications and other equipment for sports activities under NIKE-owned trademarks. It sells its products to footwear stores; sporting goods stores; athletic specialty stores; department stores; skate, tennis, and golf shops; and other retail accounts through NIKE-owned retail stores, digital platforms, independent distributors, licensees, and sales representatives. NIKE, Inc. was founded in 1964 and is headquartered in Beaverton, Oregon.

About Canada Goose

Canada Goose Holdings Inc., together with its subsidiaries, designs, manufactures, and sells performance luxury apparel for men, women, youth, children, and babies in Canada, the United States, Asia Pacific, Europe, the Middle East, and Africa. The company operates through three segments: Direct-to-Consumer, Wholesale, and Other. It offers parkas, lightweight down jackets, rainwear, windwear, apparel, fleece, footwear, and accessories for fall, winter, and spring seasons. The company operates through national e-commerce markets and directly operated retail stores. Canada Goose Holdings Inc. was founded in 1957 and is headquartered in Toronto, Canada.