Critical Comparison: Iconix Brand Group (ICON) & Under Armour (UA)
Iconix Brand Group (NASDAQ: ICON) and Under Armour (NYSE:UA) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, valuation, risk, institutional ownership, dividends, profitability and earnings.
Risk & Volatility
Iconix Brand Group has a beta of 1.41, indicating that its share price is 41% more volatile than the S&P 500. Comparatively, Under Armour has a beta of 0.78, indicating that its share price is 22% less volatile than the S&P 500.
Valuation & Earnings
This table compares Iconix Brand Group and Under Armour’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Iconix Brand Group||$352.95 million||0.87||$156.87 million||($4.42)||-1.22|
|Under Armour||$4.98 billion||1.34||$526.36 million||$0.48||31.63|
Under Armour has higher revenue and earnings than Iconix Brand Group. Iconix Brand Group is trading at a lower price-to-earnings ratio than Under Armour, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
82.9% of Iconix Brand Group shares are held by institutional investors. Comparatively, 61.7% of Under Armour shares are held by institutional investors. 1.3% of Iconix Brand Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This is a breakdown of current ratings and price targets for Iconix Brand Group and Under Armour, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Iconix Brand Group||0||2||2||0||2.50|
Iconix Brand Group presently has a consensus target price of $10.17, indicating a potential upside of 88.27%. Under Armour has a consensus target price of $18.67, indicating a potential upside of 22.97%. Given Iconix Brand Group’s stronger consensus rating and higher probable upside, equities analysts plainly believe Iconix Brand Group is more favorable than Under Armour.
This table compares Iconix Brand Group and Under Armour’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Iconix Brand Group||-82.22%||10.38%||3.02%|
Under Armour beats Iconix Brand Group on 8 of the 13 factors compared between the two stocks.
Iconix Brand Group Company Profile
Iconix Brand Group, Inc. is a brand management company. As of December 31, 2016, the Company owned a portfolio of over 30 global consumer brands across women’s, men’s, and home categories. The Company operates through segments: men’s, women’s, home and international. The Company’s brand portfolio includes brands, such as Candie’s, Bongo, Joe Boxer, Rampage, Mudd, London Fog, Mossimo, Ocean Pacific/OP, Danskin/Danskin Now, Rocawear/Roc Nation, Cannon, Royal Velvet, Fieldcrest, Charisma, Starter, Waverly, Ecko Unltd/Mark Ecko Cut & Sew, Zoo York, Sharper Image, Umbro, Lee Cooper and Artful Dodger, and interests in Material Girl, Ed Hardy, Truth or Dare, Modern Amusement, Buffalo, Nick Graham Hydraulic and PONY brands. It operates in various geographic regions, including the United States, Japan and Other (which principally represent Latin America and Europe).
Under Armour Company Profile
Under Armour, Inc. is engaged in the development, marketing and distribution of branded performance apparel, footwear and accessories for men, women and youth. The Company’s segments include North America, consisting of the United States and Canada; Europe, the Middle East and Africa (EMEA); Asia-Pacific; Latin America, and Connected Fitness. Its products are sold across the world and worn by athletes at all levels, from youth to professional, on playing fields around the globe, as well as by consumers with active lifestyles. The Company sells its branded apparel, footwear and accessories in North America through its wholesale and direct to consumer channels. As of December 31, 2016, the Company had approximately 151 factory house stores in North America primarily located in outlet centers throughout the United States. In addition, the Company distributes its products in North America through third-party logistics providers with primary locations in Canada, New Jersey and Florida.
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