UAA - Better Buy: Nike vs. Under Armour
The COVID-19 pandemic has led to a surge in people exercising at home as they remain cooped up due to lockdowns and border closures. Two of the more prominent sportswear brands are Nike (NYSE: NKE) and Under Armour (NYSE: UAA). Although many more people have taken to jogging around their block or visiting the nearby fitness corner to work out, the forced closure of brick-and-mortar stores meant that customers could not browse these stores for purchase, leading to a shift to online purchasing and digital sales.
Nike has been around much longer compared to Under Armour, being listed since 1980 compared to the latter's 2005. Under Armour is a relatively newer brand that was founded in 1996, while Nike was founded in the 1970s.
The two companies have grown rapidly over the last couple of years and are competing for a larger piece of the sportswear pie. Let's take a closer look at which company provides a more compelling investment thesis.