NIKE vs On Which Is More Profitable?

Nike and On are two prominent athletic apparel and footwear companies that have gained popularity among athletes and fitness enthusiasts worldwide. Both companies have a strong presence in the sports industry and have a loyal customer base. While Nike is well-known for its iconic Swoosh logo and innovative technologies, On has gained recognition for its cloud-like cushioning technology. In this comparison, we will explore the differences and similarities between Nike and On stocks, looking at their financial performance, market positioning, and growth potential.

NIKE or On?

When comparing NIKE and On, 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 NIKE and On.

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. NIKE has a dividend yield of 1.96%, while On has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. NIKE reports a 5-year dividend growth of 10.78% year and a payout ratio of 45.78%. On the other hand, On reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

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 NIKE P/E ratio at 23.91 and On's P/E ratio at 57.46. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. NIKE P/B ratio is 8.32 while On's P/B ratio is 10.00.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, NIKE has seen a 5-year revenue growth of 0.37%, while On's is 6.83%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with NIKE's ROE at 34.51% and On's ROE at 19.11%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $77.00 for NIKE and $45.27 for On. Over the past year, NIKE's prices ranged from $68.62 to $102.49, with a yearly change of 49.36%. On's prices fluctuated between $27.37 and $64.05, with a yearly change of 134.02%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.