Critical Survey: Talon International (OTCMKTS:TALN) & Under Armour (NYSE:UAA)

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

Insider and Institutional Ownership

34.6% of Under Armour shares are held by institutional investors. 20.3% of Talon International shares are held by company insiders. Comparatively, 15.6% of Under Armour shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and target prices for Talon International and Under Armour, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Talon International	0	0	0	0	0.00
Under Armour	4	18	3	0	1.96

Under Armour has a consensus price target of $6.58, suggesting a potential upside of 41.10%. Given Under Armour’s stronger consensus rating and higher possible upside, analysts plainly believe Under Armour is more favorable than Talon International.

Earnings and Valuation

This table compares Talon International and Under Armour”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Talon International	$32.11 million	0.17	$220,000.00	N/A	N/A
Under Armour	$5.11 billion	0.39	-$201.27 million	$0.22	21.20

Talon International has higher earnings, but lower revenue than Under Armour.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Talon International	N/A	N/A	N/A
Under Armour	1.99%	7.24%	3.06%

Risk and Volatility

Talon International has a beta of -0.67, meaning that its share price is 167% less volatile than the S&P 500. Comparatively, Under Armour has a beta of 1.86, meaning that its share price is 86% more volatile than the S&P 500.

Summary

Under Armour beats Talon International on 10 of the 12 factors compared between the two stocks.

About Talon International

Talon International, Inc. manufactures and distributes apparel components and accessories to manufacturers of fashion apparel, specialty retailers, and mass merchandisers. The company offers a line of metal, coil, and plastic zippers under the Talon brand name; apparel trim components, including tags, labels, buttons, rivets, leather patches, woven labels, heat transfer seals, tapes, ribbons, printed marketing material, polybasic, packing cartons, and hangers; Flex-It films, adhesive films, overlay films, seam sealing tapes; metal fasteners; stretch waistbands, shirt collars, and inner pocketing panels under the Tekfit brand, as well as packaging and other items; and specialty stretch technology for interlinings. It also provides outsourced trim design, sourcing, and management services, as well as supplies custom branded trim components. The company sells its products through its own sales force in the United States, Hong Kong, China, India, Indonesia, Vietnam, and Bangladesh, as well as through sales representatives in Europe. The company was formerly known as Tag-It Pacific, Inc. and changed its name to Talon International, Inc. in July 2007. Talon International, Inc. was founded in 1980 and is headquartered in Woodland Hills, California.

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.