This is evident when you look at the size chart Nike … Adidas size 8 and Nike size 8 are more or less the same, but the Superstar is known to run a bit bigger and has a thinner upper material composition and tongue. Which stock should you buy and hold for the long term? Summary of Nike’s assets and liabilities: In sum: Nike’s financial situation is relatively strong. With its originality, quality, and price; Adidas beats out Nike in a landslide. Adidas marketing strategies, meanwhile, are completely formulaic and not compelling. Their battle for supremacy has defined the modern era … Let me know if this helped. Adidas runs bigger than Nike by up to 5 millimeters. I chose these two brands mainly because they have both played a pretty significant role in my purchase history. Nike And Adidas Sustainable Initiatives. Right now, Adidas owns about 60 percent of the market due to the popularity of Yeezys and Ultra Boost and NMDs as well. All three companies are involved in shoe wars for the services of professional basketball players, which provide marketability and exposure to massive audiences. Winner: Adidas. However, we do note an unfortunate deceleration of the dividend growth rate in recent years, with a 10-year growth rate of 13.5%, a 5-year growth rate of 12.6%, a 3-year growth rate of 11.1% and a 1-year growth rate of 10.3%. , their strategies on how to get to the top are vastly different. The company also operates its own stores, supplies millions of merchants worldwide, and sponsors top athletes and sports teams. Comparison Between Nike And Adidas 1679 Words | 7 Pages. The brand Adidas is less costly; on the converse, Nike is having slightly higher price rates than Adidas. Nike shoes, especially premium models, are made using the highest-quality materials and are designed to maximize your comfort levels. Nike (NYSE: NKE) and Adidas (ETR: ADS) are the two most recognizable sports brands in the world. Nike and Adidas do not get along, and their competition to claim the two biggest sneaker markets in the world, the United States and China, has gotten so heated that some have even called their faceoff a war.. Meghan Markle: Adaptogens now have royal support, Aigis Bank, the fintech credit institute for SMEs was founded. Both admit that the market is fickle and the demand depends on the performance of new releases. Do you own research before investing in any asset. 1. Despite being the undisputed market leader, Nike’s yearly sales are still growing at an impressive rate: Adidas’ revenues are much lower than Nike’s but they are also growing at an impressive rate: VERDICT: Nike is the larger company but Adidas is growing at a rapid pace. also matters. VERDICT: Over the past 10 years, both stocks have performed strongly. Adidas dividend growth is strong. Nike is taking the quality route, and Adidas is ramping up productions. If Adidas or Nike will be highly successful in their chosen paths to success, only time can tell. Nike (NYSE: NKE) and Adidas (ETR: ADS) are the two most recognizable sports brands in the world. 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. She also covers the intersection of media and technology, and delves into interesting topics on entertainment. In fact, its 2019 EBITDA of $5.49 billion more than cover the $3.4 billion of long term debt. Nike is taking the quality route, and Adidas is ramping up productions. WINNER: NIKE. Despite proposing a low dividend yield, Nike has increased its dividend for 18 consecutive years. Adidas’ current dividend yield of 1.87% is higher than Nike’s. 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 brand value of Nike has increased year-on-year since 2010 and reached around 34.4 billion U.S. dollars in 2020. Nike was founded and established in 1964 while Adidas was founded and established in 1948. Frankly, not so much: Nike’s is growing its revenues, sustaining high margins and generating profits. Nike is base in the US and Adidas is base out of Germany. Adidas now has the upper hand over Nike in terms of sales due to the popularity of Yeezys, Ultra Boosts, and NMDs. There are other well-known and high-quality brands available in the market, but for now let’s take a deeper look at these two. For Nike, North America is also the main target because of the global revenue generated in 2017. By comparing employers on employee ratings, salaries, reviews, pros/cons, job openings and more, you'll feel one step ahead of the rest. Born2Invest uses cookies in order to improve your experience and make further customizations to how we present our content. This surged the interest and demand despite the high price tag. Lastly, Adidas’ stock has generated greater capital gains over the past 10 years but is listed on the Frankfurt Stock Exchange whereas Nike stock has the advantage of being listed on the US market. Adidas is an older brand as compare to Nike by the date of establishment. Before, once the customers missed out on an exclusive release, their only chance to cop a pair is through resellers. VERDICT: While Adidas has a long history of innovation, boasts a portfolio of popular brands and has developed key sponsorships with some of the world’s top athletes, Nike’s economic moat is wider and the brand has more appeal. Totting up the scores, it’s pretty much a shared win for Adidas and Nike on the criteria we looked at. WINNER: NIKE. Nike and Adidas carries manufactures basically the same products. Moreover, Adidas’s Stan Smith and Puma’s Clyde shoes are performing beyond average in the market. With the recent dip in the interest of retail stores in the U.S., just how do these two companies plan to bring back consumer engagement in their products? It... Are we on the cusp of a runaway move? That being said, a temporary dividend cut is sometimes necessary to free up the extra cash needed to invest and ensure the business’ long term survival. Moreover, Adidas’s Stan Smith and Puma’s Clyde shoes are performing beyond average in the market. Contrarily Nike mostly uses rubber for the soles of the shoes. However, Adidas’ stock has generated greater capital gains returns and trades at a lower P/E ratio. The case with Under Armour just shows how unpredictable the shoe market is. Nike’s target markets are basketball and running; Adidas’ focus is more on soccer and tennis. This means that the stock is currently trading at 21.5 times its earnings, which is reasonable. In addition to its namesake brand, the company also owns Reebok, 8.33% of the Bayern Munich football team, and Australian fitness technology company Runtastic. The companies I chose are Adidas and Nike. 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… Logo of Nike is Swoosh while that of Adidas is 3 Stripes. In the US, Nike has a clearer advantage over its rival in terms of Impression score among all respondents. VERDICT: Both companies have sustainable debt levels. Ecommerce product pages: where to place 30 elements and why 2. Nike Shoe Quality. Both Adidas and Nike have taken significant steps to reduce their environmental impact. Anne Kings is a reporter for the financial sector, often tackling Wall Street and shareholders' interests. NIKE’s current P/E ratio is 30.80. However, “cash is king” and Nike generates twice the total cash flow Adidas does. However, while Adidas’ gross margin is better than Nike’s, Nike’s net profit margin is much higher. Login. Unfortunately, Under Armour is struggling recently. However, Nike increased its production a little bit higher, which they hoped to bring in larger profits, but it backfired because the demand decreased due to the availability of pairs. The reason I chose these two is because they 're both popular brand names around the world. Nike Shoes Vs. Other Brands: What Makes Them Better . Beats’ activation around the opening game led to 50m views, compared to Guinness’ 13m; something both Nike and Adidas will be looking to and waiting for as the opening game draws closer.” Adidas’ Facebook followership has grown twice as fast as that of Nike in 2016 with much higher engagement rates driven largely by its content. Adidas:22/25+ 3. All salaries and reviews are posted by employees working at NIKE vs. adidas. Nike has dominated the market for a long time. Nike and Adidas have also been the top sponsors in the sports industry. In sum: NIKE’s moat is constituted of its scale (over $34 billion in annual sales), brand intangible asset (the company controls 50% of the American market and 19% of the Chinese market), key sponsorships and pricing power (through premium innovation). More businesses are investing in company culture—here's why. From a financial perspective, Nike is much larger than Adidas but, in recent years, Adidas has accelerated its growth. Nike:21.5/25+ 2. Both started using sustainable materials, sustainable production, and sustainable recycling. However, Nike’s stockholder equity has significantly decreased since 2016 whereas Adidas’ has increased. In sum: Nike’s dividend yield is low but the payout is reliable. While they are selling similar products, Nike products are more expensive than Adidas because all Nike brand has high and advance technology. Which strategy will prove to be effective in the end? Nike is focusing on quality while Adidas wants to increase production. Concerning the dividend, Adidas has the slightly higher yield and dividend growth rate but Nike has raised its dividend for the past 18 consecutive years compared to Adidas’ 4. WINNER: NIKE. The same size on Nike tallies up to 9.62 inches, about a millimeter smaller. Both are great brands, but there are a number of reasons Adidas is the clear winner. In order to answer this question, an exhaustive comparative analysis is necessary. Historically, the yield has always been very low and has not surpassed 1.5% in the past 10 years. Nike is currently on +47, ahead of its German rival on +41. ADIDAS’ current P/E ratio is 21.54. WINNER: TIE. Compare NIKE vs adidas BETA See how working at NIKE vs. adidas compares on a variety of workplace factors. 10 nudge-tastic examples of persuasive copywri… The plus point with Nike is that they have strong marketing and sponsorship agreements to back it. Nike is the most valuable sports brand in the world, especially in North America. Nike outsource its’ products from Taiwan … Nike is known to be more comfortable than adidas. Sometimes she also writes about the cannabis industry, in particular CBD and hemp. 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. Nike is definitely one of those brands. A digital product strategy entails defining the value that you will be creating in a tangible and succinct way. That was before they released the Yeezy, which proved to be a. for them. Since the problem was rooted in overproduction, Nike CEO Matt Parker says the company is set to undergo a massive transformation. Nike didn’t make it to the top by sheer luck. Although past performance does not guarantee similar future performance, it does provide some indication of what to expect. I will analyze the following aspects of both companies: Nike, founded in 1964 by Bill Bowerman and Phil Knight, takes its name from Nike, the Greek Goddess of victory. Policing Tech Giants: No Harm, No Foul, No Social Media? Apparel. Key Differences between Adidas and Nike. The media mileage also surged. (By comparison, Adidas’ market cap is $55 billion, and Under Armour’s is $10 billion.) It is the largest sportswear company in Europe, employing over 57 thousand people and the second largest in the world, after Nike. Adidas is much smaller than Nike, but what makes Adidas different is that it has a better sense of what its customers are looking for and works on it. Adidas’ annual dividend payout if $4.33 and the payout ratio is 38.6%. However, Adidas’ dividend yield and growth rate are higher but Nike has a more reliable history of consistent dividend growth. Nike is much larger but Adidas is growing at a faster rate. The company’s debt burden is sustainable. Nike promotes its products by sponsorship agreements with celebrity athletes, professional teams and college athletic teams. The media mileage also surged. Under Armour CEO Kevin Plank admitted that they will deliver fresh products and innovation in their offerings to try to stop the bleeding in the next quarters. StockX CEO Josh Luber says Adidas only owned about one percent of the market two years ago. The clash between two of the world’s biggest athletic shoe brands is no secret. VERDICT: Both companies pay out relatively low-yield dividends. Both have very effective product pages, with Nike perhaps edging Adidas on style, and Adidas including a bit more functionality. How did Namibia Critical Metals stock perform recently? Even though no company compares to Nike’s endorsers and marketing strategy, Adidas’ products are provided the consumer with a better experience. StockX CEO Josh Luber says Adidas only owned about one percent of the market two years ago. How have Nike and Adidas stock performed in the past? Thanks largely to the success of endorser Stephen Curry, who was a back-to-back MVP of the NBA and had two championships in the last three years, Under Armour came out of nowhere and gave Nike and Adidas a good scare. There is some evidence it is a distinct possibility. Nike, Reebok and Adidas offer athletic apparel to professional athletics. Under Armour:18.5/25+ For more on this topic, see: 1. In sum: Adidas’ moat is constituted by its deep branded portfolio, intangible assets (long history of product innovation) and key sponsorships (Adidas recently pried James Harden away from Nike). Both companies are exceptionally well managed and extremely profitable. - Company ComparisonAdidas & Nike are two huge competitors and have been for a lot of years. The entry of Under Armour was also a factor. Unfortunately, Under Armour is struggling recently. reports that the company is forced to save $130 million in costs through cutting jobs, inventories and facilities. Probably this is the reason, Nike … (Source). WINNER: ADIDAS. The competition has clearly gone beyond sneakers battle; it has now expanded to lifestyle and athleisure. She is currently based in New York. With superstar athletes in almost every sport donning the Swoosh logo, it was once the must-have in sports apparel and shoe market. 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. This is not good considering how low the yield is. Nike’s Free Cash Flow is increasing at an impressive pace: Its 2019 FCF of $4.7 billion is up 144.9% since 2016. Since its creation in 1971, Nike started and continues to be one of the most valuable sports brands on the market. VERDICT: Both companies are generating massive Free Cash Flow. Right now, Adidas owns about 60 percent of the market due to the popularity of Yeezys and Ultra Boost and NMDs as well. Their battle for supremacy has defined the modern era and looks set to continue for the next decade and more. Despite adidas and Nike being forerunners for world-class shoes, their sizing differences can be a real hassle when shopping online. 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 Most cannabis stocks could not make up any more ground in the past week, and perhaps investors are excited in... From your website to your Instagram feed, inclusive marketing can be an integral part of your marketing strategy—but only if... How did cannabis companies perform this past week? Further, the total long term debt of $1.5 billion is entirely covered by it 2019 EBITDA of $3.9 billion. Now, they don’t even have to go to resellers since the stores still have stocks in them. Both companies have solid balance sheets but Adidas appears in [very] slightly better financial shape. However, Nike has much higher margins and generates greater cash flow. Nike. Nike is a U.S based brand of sportswear while Adidas is a German-based company. Adidas’ Free Cash Flow is also increasing very rapidly: Its 2019 FCF of $2.1 billion is up 202.8% since 2016. Nike vs Adidas market rivalry. The company’s debt burden is sustainable. COVID-19 : Accelerator for Business Model Innovation in China, Quibi enters the Streaming Wars amid the Quarantine Era, but are they about to disrupt a different…, Facebook’s Mantra Is “Join Us or We’ll Copy You”, Huawei is considering manufacturing smartphones in Brazil, Why Consumer Capitalism is the Real Problem in Fashion Industry, What First-Graders Can Teach Us About Focus In Business And Life, Fake Disruption: 3 Companies That Claimed to Change the Game. By continuing to use our website, you accept and give your consent to our practices as described in the following: our revised. Nike produces its Jordan shoes in a very limited number only. USA TODAY reports that the company is forced to save $130 million in costs through cutting jobs, inventories and facilities. 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