Comparing NIKE (NYSE:NKE) and Yue Yuen Industrial (OTCMKTS:YUEIY)

NIKE (NYSE:NKE) and Yue Yuen Industrial (OTCMKTS:YUEIY) are both consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, risk, valuation, analyst recommendations, profitability, institutional ownership and earnings.

Insider and Institutional Ownership

64.3% of NIKE shares are held by institutional investors. Comparatively, 0.1% of Yue Yuen Industrial shares are held by institutional investors. 0.8% of NIKE shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

NIKE pays an annual dividend of $1.60 per share and has a dividend yield of 2.4%. Yue Yuen Industrial pays an annual dividend of $0.41 per share and has a dividend yield of 4.6%. NIKE pays out 82.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. NIKE has increased its dividend for 22 consecutive years.

Profitability

This table compares NIKE and Yue Yuen Industrial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NIKE	6.23%	21.16%	7.74%
Yue Yuen Industrial	N/A	N/A	N/A

Volatility & Risk

NIKE has a beta of 1.29, suggesting that its share price is 29% more volatile than the S&P 500. Comparatively, Yue Yuen Industrial has a beta of 0.7, suggesting that its share price is 30% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for NIKE and Yue Yuen Industrial, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NIKE	0	8	25	3	2.86
Yue Yuen Industrial	0	0	0	0	0.00

NIKE presently has a consensus target price of $82.21, indicating a potential upside of 23.03%. Given NIKE’s stronger consensus rating and higher possible upside, equities research analysts plainly believe NIKE is more favorable than Yue Yuen Industrial.

Valuation and Earnings

This table compares NIKE and Yue Yuen Industrial”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NIKE	$46.31 billion	2.13	$3.22 billion	$1.95	34.27
Yue Yuen Industrial	$8.18 billion	0.35	$392.42 million	N/A	N/A

NIKE has higher revenue and earnings than Yue Yuen Industrial.

Summary

NIKE beats Yue Yuen Industrial on 14 of the 16 factors compared between the two stocks.

About NIKE

NIKE, Inc., together with its subsidiaries, designs, develops, markets, and sells athletic footwear, apparel, equipment, accessories, and services worldwide. The company provides athletic and casual footwear, apparel, and accessories under the Jumpman trademark; and casual sneakers, apparel, and accessories under the Converse, Chuck Taylor, All Star, One Star, Star Chevron, and Jack Purcell trademarks. It also sells a line of performance equipment and accessories comprising bags, sport balls, socks, eyewear, timepieces, digital devices, bats, gloves, protective equipment, and other equipment for sports activities under the NIKE brand; and various plastic products to other manufacturers. In addition, the company markets apparel with licensed college and professional team, and league logos, as well as sells sports apparel; and licenses unaffiliated parties to manufacture and sell apparel, digital devices, and applications and other equipment for sports activities under NIKE-owned trademarks. It sells its products to footwear stores; sporting goods stores; athletic specialty stores; department stores; skate, tennis, and golf shops; and other retail accounts through NIKE-owned retail stores, digital platforms, independent distributors, licensees, and sales representatives. NIKE, Inc. was founded in 1964 and is headquartered in Beaverton, Oregon.

About Yue Yuen Industrial

Yue Yuen Industrial (Holdings) Limited, an investment holding company, manufactures and sells athletic, athleisure, casual, and outdoor footwear in the People’s Republic of China, rest of Asia, the United States, Europe, and internationally. The company operates as an original design manufacturer/original equipment manufacturer for various international brand names, such as adidas, Asics, New Balance, Nike, Salomon, and Timberland. It retails sportswear, outdoor, and leisure products; and operates a sport service platform, which includes events, venues, media, broadcasting, shopping, activities, registration, ticketing, and other sports-related services online and offline for event sponsorship, promotions, sports center operations, and design services. In addition, the company provides commercial spaces to retailers and distributors; and corporate management consultation services. Further, it trades in footwear. The company was founded in 1969 and is headquartered in Kwun Tong, Hong Kong.