That was before they released the Yeezy, which proved to be a game changer for them. Policing Tech Giants: No Harm, No Foul, No Social Media? Should investors be worried? While the growth rate is erratic, with wild swings in dividend increases, it is consistently superior to Nike’s. Furthermore, Nike’s returns are significantly higher than Adidas’. In terms of revenue growth, Adidas footwear has added $5.8 billion since 2015 growing at an average rate of 17.6% whereas Nike footwear has only added $4.3 billion at an average rate of 6.8%. The world is constantly changing, and there are disparities. As compared to Adidas, the price of products of Nike are high. The company manufactures sportswear and equipment, operates its own retail stores and employs more than 73 thousand people worldwide. Unfortunately, Under Armour is struggling recently. It adopts different and Competetive pricing startegy than Adidas, it is based on the basis of premium segment as target customers. However, the long term debt increased 62% since 2016 and the company’s debt to equity ratio has increased to 2.00 from 1.34 in 2016. By comparing employers on employee ratings, salaries, reviews, pros/cons, job openings and more, you'll feel one step ahead of the rest. If Adidas or Nike will be highly successful in their chosen paths to success, only time can tell. Even though no company compares to Nike’s endorsers and marketing strategy, Adidas’ products are provided the consumer with a better experience. Nike has dominated the market for a long time. According to Business Insider, their strategies on how to get to the top are vastly different. This means that the stocks price is trading at 30 times earnings, which is considered high. Do you own research before investing in any asset. All three companies are involved in shoe wars for the services of professional basketball players, which provide marketability and exposure to massive audiences. Nike has dominated the market for a long time. The entry of Under Armour was also a factor. Submitted By also matters. Nike produces its Jordan shoes in a very limited number only. On the other hand, many consider adidas’ shoes to be more stylish. Nike:21.5/25+ 2. In the US, Nike has a clearer advantage over its rival in terms of Impression score among all respondents. Evidently, Nike’s management is very competent at generating returns: Margins are also robust, although net margins are quite low: Adidas’ returns are good but significantly lower than Nike’s: VERDICT: Both companies are outperforming relative to their industry average. VERDICT: Both companies are generating massive Free Cash Flow. I’m not sure about the Supercourt but as they are very similar, I’d go for a size 7.5 too for that one. The brand value of Nike has increased year-on-year since 2010 and reached around 34.4 billion U.S. dollars in 2020. StockX CEO Josh Luber says Adidas only owned about one percent of the market two years ago. Adidas dividend growth is strong. The same size on Nike tallies up to 9.62 inches, about a millimeter smaller. However, while Adidas’ gross margin is better than Nike’s, Nike’s net profit margin is much higher. WINNER: ADIDAS. Nike is focusing on quality while Adidas wants to increase production. How did Namibia Critical Metals stock perform recently? From a financial perspective, Nike is much larger than Adidas but, in recent years, Adidas has accelerated its growth. However, the company lost its grip recently. Nike is taking the quality route, and Adidas is ramping up productions. Nike’s Free Cash Flow is increasing at an impressive pace: Its 2019 FCF of $4.7 billion is up 144.9% since 2016. It is the largest sportswear company in Europe, employing over 57 thousand people and the second largest in the world, after Nike. Adidas marketing strategies, meanwhile, are completely formulaic and not compelling. However, Adidas’ dividend yield and growth rate are higher but Nike has a more reliable history of consistent dividend growth. The stock reached its all time high of $316.05 on January 15th, 2020, before plunging 33.8%. Nike didn’t make it to the top by sheer luck. Nike outsource its’ products from Taiwan … The brand has built several sources of competitive advantage which include technology, marketing, supply chain as well as product design and quality. Totting up the scores, it’s pretty much a shared win for Adidas and Nike on the criteria we looked at. It... Are we on the cusp of a runaway move? Moreover, Adidas’s Stan Smith and Puma’s Clyde shoes are performing beyond average in the market. However, “cash is king” and Nike generates twice the total cash flow Adidas does. Despite the market dominating presence of Nike, Adidas has been able to strengthen its position in the global markets. These factors helped propel the sales of Adidas. Sub-Saharan soda rush: PepsiCo expands to Africa, For your convenience: How modern retailers like Casey’s General Stores, Inc. (NASDAQ:CASY), Murphy USA Inc. (NYSE:MUSA) TravelCenters of America LLC (NASDAQ:TA) drive their margins, Here are the states with the unfriendliest customers, Here’s how to take the first steps towards debt-free living, You must be logged in to post a comment WINNER: ADIDAS. A new survey from Canaccord Genuity among 1,400+ athletic apparel consumers finds Nike is way out front in innovation, fashion and purchase intent as compared with Adidas… Comparison Between Nike And Adidas 1679 Words | 7 Pages. Nike is synonymous with elite athletics as they sponsor hundreds of high-profile athletes and sports teams around the world. Adidas:22/25+ 3. Sometimes she also writes about the cannabis industry, in particular CBD and hemp. With superstar athletes in almost every sport donning the Swoosh logo, it was once the must-have in sports apparel and shoe market. Moreover, Adidas’s Stan Smith and Puma’s Clyde shoes are performing beyond average in the market. Nike and Adidas carries manufactures basically the same products. Nike promotes its products by sponsorship agreements with celebrity athletes, professional teams and college athletic teams. All of Nike’s brands generated $34.4 billion in total revenue in the last financial year (running to the end of May 2017), while Adidas reported annual revenue of 19.2 billion euros in the last financial year, which matched the calendar year of 2017 (all charts below are based on these financial years). Nike (NYSE: NKE) and Adidas (ETR: ADS) are the two most recognizable sports brands in the world. With its originality, quality, and price; Adidas beats out Nike in a landslide. Nike shoes, especially premium models, are made using the highest-quality materials and are designed to maximize your comfort levels. Further, the total long term debt of $1.5 billion is entirely covered by it 2019 EBITDA of $3.9 billion. Right now, Adidas owns about 60 percent of the market due to the popularity of Yeezys and Ultra Boost and NMDs as well. In order to answer this question, an exhaustive comparative analysis is necessary. However, through it all, there are always popular brands of products that maintain their status on a global scale. WINNER: NIKE. Your choice to invest in one or the other will depend on your personal brand preference and the criteria you favor when choosing a stock. Apparel. Adidas runs bigger than Nike by up to 5 millimeters. (Source). As a result of the recent dip in stock price, the current yield is higher than the 4-year average, indicating the stock price may be slightly undervalued. 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