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Key for Investors: Nike’s Performance versus Its Peers

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Nike and its peers

An analysis of Nike’s income statement in 1Q16 follows:

  • The gross profit margins of Nike (NKE), Crocs (CROX), Under Armour (UA), Ross Stores (ROST), Sketchers USA (SKX), and Dick’s Sporting Goods (DKS) are 47.48%, 54.93%, 48.37%, 28.60%, 46.80%, and 30.37%, respectively.
  • The EPS (earnings per share) of Nike, Ross Stores, Sketchers USA, and Dick’s Sporting Goods are $1.34, $0.63, $1.55, and $0.77, respectively.

An analysis of Nike’s balance sheet in 1Q16 follows:

  • The current ratios of Nike, Crocs, Ross Stores, Sketchers USA, and Dick’s Sporting Goods are 2.52, 2.89, 1.41, 2.53, and 1.56, respectively.

An analysis of Nike’s valuation follows:

  • The PE (price-to-earnings) ratios of Nike, Ross Stores, Sketchers USA, and Dick’s Sporting Goods are 30.94x, 20.54x, 34.30x, and 16.42x, respectively.
  • The PBV (price-to-book value) ratios of Nike, Crocs, Ross Stores, Sketchers USA, and Dick’s Sporting Goods are 7.75, 2.81, 8.28, 5.81, and 3.13, respectively.

According to the above findings, Nike outperformed its peers based on EPS, the PE ratio, and the PBV ratio.

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ETFs that invest in Nike

The SPDR Dow Jones Industrial Average ETF (DIA) invests 4.56% of its holdings in Nike. DIA tracks a price-weighted index of 30 large-cap US stocks that are selected by Wall Street Journal editors.

The Columbia Select Large Cap Growth ETF (RWG) invests 4.53% of its holdings in Nike. RWG is an actively managed fund that holds US-listed large-cap companies with above-average growth expectations.

The iShares Dow Jones US Consumer Goods Sector Index Fund (IYK) invests 3.91% of its holdings in Nike. IYK tracks a market-cap-weighted index of stocks in the US consumer goods sector.

Comparing Nike and its ETFs

An analysis of Nike’s price movement follows:

  • The YTD (year-to-date) price movements of Nike, DIA, RWG, and IYK are 20.36%, -7.02%, 1.07%, and -0.88%, respectively.

An analysis of Nike’s valuation follows:

  • The PE ratios of Nike, DIA, RWG, and IYK are 30.94x, 14.98x, 52.94x, and 22.45x, respectively.
  • The PBV ratios of Nike, DIA, RWG, and IYK are 7.75x, 3.83x, 7.62x, and 5.05x, respectively.

According to the above findings, Nike outperformed its ETFs based on the price movement, PE ratio, and PBV ratio.

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