Nike Vs Under Armour Essay

Project Part-4 NIKE VS UNDER ARMOUR To summarize the financial positions of Nike and Under Armour we must look at the financial position of each and how they do better or worse in each. The profitability of Nike through the net profit margin is a solid 4% higher than Under Armour, it may not seem like a lot but when you are working with billions of dollars it says a lot about what the company takes home after all its expenses. Nikes net income far outranks Under Armour showing its ability to make more money and have more money in the Retained Earnings for investors and stockholders. UnderArmour outperforms Nike in gross profit percentage showing that it can turn sales into profit better than Nike. Looking at the Solvency, Nike does better

Nike hold much more liablity than UnderArmour does and is unable to pay off its short term debts as quickly as Nike would. Each company hold close to the same in current assets but Nike holds more liablity making it the worse choice.
Investopedia gives Nike a huge advantage when it comes to market capitalization with 102 Billion dollars in market capitalization compared to UnderArmours measly 15 Billion. Nike dominates the market its massive globalization and marketability. When it comes to growth UnderArmour knocks Nike our of the water with a 29.5% 5 year growth compared to only 10% by Nike. (amigobulls.com) UnderArmour is much smaller but is growing rapidly giving it the ability to challenge the dominance of Nike.
According to Investorplace UnderArmour has been gaining ground due to its new profit sharing ideas with athletes. It has been making huge profits by signing many athletes and allowing them a percentage of the profits where Nike has no such agreements. They have been able to sign huge deals such as “Stephen Curry who netted UnderArmour 158,000,000 in under 3 months.” They are taking advantage of this niche in the market and are making big time on