Li Ning vs NIKE Which Offers More Value?

Li Ning and Nike are well-known global sportswear brands with a strong presence in the athletic market. Li Ning, a Chinese company founded by Olympic gymnast Li Ning, has been rapidly growing in recent years, gaining traction especially within the Asian market. On the other hand, Nike, an American multinational corporation, is a dominant force in the sports industry worldwide. Both companies have seen fluctuations in their stock prices, making their stocks an interesting comparison for investors looking to capitalize on the athletic apparel sector.

Li Ning or NIKE?

When comparing Li Ning 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 Li Ning 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. Li Ning has a dividend yield of 0.84%, while NIKE has a dividend yield of 2.42%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Li Ning reports a 5-year dividend growth of 0.00% year and a payout ratio of 47.33%. 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 Li Ning P/E ratio at 335.32 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. Li Ning P/B ratio is 39.15 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, Li Ning has seen a 5-year revenue growth of -0.90%, while NIKE's is 0.47%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Li Ning's ROE at 12.00% and NIKE's ROE at 37.37%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $54.30 for Li Ning and $76.10 for NIKE. Over the past year, Li Ning's prices ranged from $39.26 to $81.38, with a yearly change of 107.28%. 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.