ASICS vs NIKE Which Should You Buy?

ASICS and Nike are two of the most well-known and successful athletic apparel and footwear companies in the world. Both companies have built strong brands and loyal customer bases, but they operate in slightly different segments of the market. ASICS is known for its focus on performance and innovation, while Nike is known for its iconic swoosh logo and celebrity endorsements. Investors often compare the stocks of these two companies, looking at factors such as revenue growth, profitability, and market share to determine which one offers the most promising investment opportunities.

ASICS or NIKE?

When comparing ASICS and NIKE, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between ASICS and NIKE.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. ASICS has a dividend yield of 0.01%, while NIKE has a dividend yield of 1.97%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. ASICS reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, NIKE reports a 5-year dividend growth of 11.13% year and a payout ratio of 41.56%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with ASICS P/E ratio at 41.61 and NIKE's P/E ratio at 21.68. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. ASICS P/B ratio is 8.76 while NIKE's P/B ratio is 8.24.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, ASICS has seen a 5-year revenue growth of -0.62%, while NIKE's is 0.47%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with ASICS's ROE at 23.36% and NIKE's ROE at 37.37%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $19.97 for ASICS and $76.62 for NIKE. Over the past year, ASICS's prices ranged from $7.26 to $22.00, with a yearly change of 202.93%. NIKE's prices fluctuated between $70.75 and $123.39, with a yearly change of 74.40%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.