Kinks in the Under Armour Inc (UA)?

Nike has certainly been able to give investors a smoother ride over the long-term.  Couple these numbers with Nike’s rock-solid 1.3% dividend yield, higher net profit margins, a strong overall balance sheet, and just $161 million in long-term debt. Under Armour has no dividend payout and is comparatively riskier than Nike, but with great risk comes great reward. Under Armour has outperformed Nike and the S&P 500 so far this year, which might be an indicator of things to come if the company can start deriving significant revenues from the international market.

Bottom line

Overall, all of the companies profiled in this article make for robust investments except for Lululemon. Regardless of Under Armour’s lack of international presence, the company is attempting to make strides in the international arena and has demonstrated strength in the women’s apparel sector. Under Armour, Nike and Adidas are stocks to keep your eyes on regardless of which one comes out on top in the ongoing battles between the three.

Evan Buck has no position in any stocks mentioned. The Motley Fool recommends Lululemon Athletica, Nike, and Under Armour. The Motley Fool owns shares of Nike and Under Armour.

The article Kinks in the Under Armour? originally appeared on Fool.com.

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