As both companies are keeping their market share stable while growing in line with market growth, I would say Adidas is the better investment for the long-term because it has a lower PE ratio, has much lower debt levels and is involved in much less financial engineering.
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Is adidas a good investment?
Management has a solid plan to deliver 17% growth, 55% higher than the company has ever experienced, and analysts expect closer to 30% growth. adidas is 20% undervalued, trading at 11.2X cash-adjusted earnings, and could potentially triple in the next 5 years.
Is it better to invest in Nike or adidas?
The answer is simple – Nike is more efficient. The American giant provides more value to the investors than its German peer. Nike has a higher net profit margin of 13%, while adidas only has 9.6%. adidas’ gross margin is higher, but this is due to a higher share of the apparel in their revenue.
Is adidas stock undervalued?
I value adidas based on (1) multiples, (2) a zero-growth scenario, and (3) a scenario that is based on analyst consensus estimates. My base-case analysis finds that adidas is about 50% undervalued—based on a target price of $246.49/share.
Why should I buy adidas?
It is Adidas’ goal to be the foremost athletic brand in the world. Therefore, everything they do is rooted in sports. The brand mark, according to Adidas, “Is the sharp end of our spear, seen on innovative products, as well as with the world’s best athletes, teams, and events.”
Is Adidas a buy or sell?
adidas has received a consensus rating of Hold. The company’s average rating score is 2.22, and is based on 7 buy ratings, 8 hold ratings, and 3 sell ratings.
Will Adidas stock go up?
Stock Price Forecast
The 26 analysts offering 12-month price forecasts for Adidas AG have a median target of 98.80, with a high estimate of 173.60 and a low estimate of 61.45. The median estimate represents a +19.42% increase from the last price of 82.73.
What makes Adidas different from its competitors?
The unique selling point of Adidas is developing such light-weighted and comfortable sports apparel that the other competitors could not manufacture. Based on this, Adidas customers put deep trust and value to its products and services, hence the brand expands on a wider scale.
Why are Adidas stocks going down?
Adidas on Tuesday cut its 2022 earnings target, citing a slower-than-expected recovery in China from pandemic restrictions. “Given the continued widespread COVID-19-related restrictions, Adidas now expects revenues in Greater China to decline at a double-digit rate during the remainder of the year,” the company said.
Who is more profitable Nike or Adidas?
The biggest apparel brand in the world
U.S.-based Nike is the world’s leading brand in athletic footwear and apparel, and the world’s most valuable clothing brand in general. Nike has a higher global revenue than its main competitors, Adidas and Puma, put together.
Is Adidas a good long term stock?
Over the past 5 years, Adidas stock has been a much better investment as it rewarded shareholders with a 300% return compared to Nike with a 100% return.
Why are there 2 Adidas stocks?
adidas AG ADRs, with the ticker symbol ‘ADDYY,’ are dollar-denominated securities backed by the shares trading in Germany. The ratio between the ADR and the underlying ordinary shares is 2:1, meaning that two adidas AG ADRs are the equivalent of one adidas AG ordinary share.
Is adidas a blue chip company?
Adidas (ADS)
This European blue-chip stock is also based in Germany, but brings with it global operations and a brand name that’s recognised just about everywhere. It’s one of the most valuable sports brands in the world.
What is Adidas best known for?
Adidas, in full Adidas AG, German manufacturer of athletic shoes and apparel and sporting goods. In the early 21st century it was the largest sportswear manufacturer in Europe and the second largest (after Nike) in the world.
What is Adidas marketing strategy?
The brand works to create excitement and enthusiasm around the world of sports on a personal and relatable level. They use multiple outlets, including social and retail, to converse with their customers. Likewise, Adidas strives to be everywhere its target audience is to deliver a unified and unique experience for all.
Who is Adidas target market?
Adidas uses differentiated targeting strategy to target young adults, adults as well as children who have passion for fitness & sports. Although it targets customers in the age group of 13-40 years but majority of its customers are of 15-30 years of age who hail from upper middle class or the luxury class of customers.
Is Adidas a dividend stock?
Adidas pays a dividend 1 times a year. The payment month is May. The dividend calendar shows you for more than 1,000 dividend stocks in which month which company distributes its dividends.
Whats a good PEG ratio?
What Is a Good PEG Ratio? As a general rule, a PEG ratio of 1.0 or lower suggests a stock is fairly priced or even undervalued. A PEG ratio above 1.0 suggests a stock is overvalued.
When did adidas start?
On August 18, 1949, Adi Dassler started over again at the age of 49, registered the ‘Adi Dassler adidas Sportschuhfabrik’ and set to work with 47 employees in the small town of Herzogenaurach. In the same year, he registered a shoe that included the registration of the soon-to-become-famous adidas 3-Stripes.
Will Nike stock go up?
The 28 analysts offering 12-month price forecasts for Nike Inc have a median target of 130.00, with a high estimate of 185.00 and a low estimate of 100.00. The median estimate represents a +14.09% increase from the last price of 113.95.
Is adidas publicly traded?
The adidas AG share is listed on the “Deutsche Börse” stock exchange in Frankfurt. The stock is part of the DAX index, which includes the 40 largest German companies listed.