Foot Locker vs NIKE Which Is More Lucrative?

Foot Locker and Nike are two major players in the athletic footwear and apparel industry. While both companies cater to athletes and sports enthusiasts, they operate in different segments of the market. Foot Locker is a retailer that sells various brands including Nike, while Nike is a manufacturer and distributor of its own products. Investors often compare the two stocks to determine which offers better growth potential and profitability. Understanding the strengths and weaknesses of each company is essential in making informed investment decisions.

Foot Locker or NIKE?

When comparing Foot Locker 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 Foot Locker 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. Foot Locker has a dividend yield of -%, while NIKE has a dividend yield of 2.42%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Foot Locker reports a 5-year dividend growth of 3.53% year and a payout ratio of -10.41%. 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 Foot Locker P/E ratio at -6.47 and NIKE's P/E ratio at 21.64. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Foot Locker P/B ratio is 0.82 while NIKE's P/B ratio is 8.23.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Foot Locker has seen a 5-year revenue growth of 0.26%, while NIKE's is 0.47%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Foot Locker's ROE at -12.29% and NIKE's ROE at 37.37%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $24.57 for Foot Locker and $76.10 for NIKE. Over the past year, Foot Locker's prices ranged from $19.84 to $35.60, with a yearly change of 79.44%. 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.