NIKE vs Supreme Which Is Superior?

Nike and Supreme are both iconic brands in the world of fashion and streetwear. As two giants in the industry, their stocks are closely watched by investors and fans alike. Nike, known for its innovative designs and global reach, has seen steady growth in its stock price over the years. On the other hand, Supreme, with its limited edition releases and cult following, has seen its stocks soar thanks to high demand and exclusivity. This comparison of Nike vs Supreme stocks highlights the dynamic nature of the fashion industry and the impact of brand loyalty on investment opportunities.

NIKE or Supreme?

When comparing NIKE and Supreme, 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 Supreme.

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 1.95%, while Supreme has a dividend yield of 2.96%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. NIKE reports a 5-year dividend growth of 11.13% year and a payout ratio of 41.56%. On the other hand, Supreme reports a 5-year dividend growth of 0.00% year and a payout ratio of 19.36%.

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 21.83 and Supreme's P/E ratio at 8.83. 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 8.30 while Supreme's P/B ratio is 3.42.

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 0.47%, while Supreme's is 2.34%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with NIKE's ROE at 37.37% and Supreme's ROE at 42.41%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $76.77 for NIKE and £167.15 for Supreme. Over the past year, NIKE's prices ranged from $70.75 to $123.39, with a yearly change of 74.40%. Supreme's prices fluctuated between £87.00 and £209.70, with a yearly change of 141.03%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.