Adidas Stock vs. Nike Stock - 3 Big Picture Key Investing Factors!
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- Опубликовано: 26 июл 2024
- Adidas stock (symbol: ADDYY) did much better than Nike stock (NKE) over the last 5 years because the company copied what Nike did. However, Nike's valuation is still much higher and the debt is piling up. Therefore, Adidas is the better stock to invest in, but you never know given it is also a question about investing in European stocks vs. American stocks.
I made a video on Nike stock in June: • Nike Stock Analysis - ...
My conclusion for Nike’s stock was overvaluation from a fundamental perspective and risky because:
- a growth slowdown is happening and what makes things worse,
- the management is attempting to conceal the slowdown with financial engineering.
- Nike has an extreme PE ratio which makes the stock even riskier.
In this video I’ll discuss Adidas stock as an investment opportunity and compare it to Nike stock and explain why long-term investors will continue to be better off investing in Adidas stock for the long-term.
This analysis will comprehend the following:
- Adidas stock vs Nike Stock price movement
- General business environment for both Nike and Adidas based on Q2 2020 results
- Strategic comparison and risks
- Adidas and Nike Stock fundamental comparison
Through the analysis I’ll also touch on the core investing concepts one has to think about in this environment where Adidas and Nike come as amazing examples:
- The risks of growth investing - Both Nike and Adidas stock prices have long-term growth priced in
- Do fundamentals matter at all in this market?
- Financial engineering - is it ok to take debt to push the stock higher? Nike’s debt bonanza.
So, all in all, it is not so much about the better investment, but about investing in general when it comes to Nike and Adidas.
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#adidasstock #nikestock #stocks
Your videos are super understandable and your presentation excellent. I was wondering if you could cover more investing strategies and techniques. I’m in my late 40s and its seems like my retirement plans are falling apart due to the market condition.
will work on it!
I think why I keep coming back to your channel is not always the content, but the way you think about the problem which is 10x more important.
Thanks!
Sven, thanks a lot again for your nice videos! I am glad that you are doing Intel. Looking forward to your next video.
Thanks for starting up this series Sven I know it's a lot of work.
I am invested in Nike but also am thinking in selling my position. I am not comfortable with the actual situation on the stock market. All overvalued and „Corona“ isnt over yet
great analysis, i always like that you dont just tell a story about the company but you are going to practical numbers and do some valuation because i see so many people talking about great buisnesses but they forget to talk about how much they need to pay to buy a share of the buissnes and give a rough guide on where the price stands relative to the returns. So many people are sold to stories but few talk about the value an investor gets. You are practical guy and that's rare, you take an holistic view and balance things, that's how is done correctly.
really thanks!
Thank you Sven. This was a great analysis as always!
We don't deserve U Sven. Thanks for all U do. Glad I could go back in time to see even more Adidas research. Seldom covered. Amazing opportunity at the moment. I knew once I completed my due diligence, that I could probably compare to Sven's research 🙂
Great comparison.. I have been looking one for some time and finally found it.
Glad I could help
I like these comparisons. Also love the matching threads. ;)
Bel lavoro. Ti ringrazio per le analisi su Austria, ho conosciuto e analizzato frequentis grazie al tuo blog, per i miei investimenti anche se ad oggi non entro ancora. Mi piacerebbe altre tue analisi su ulteriori stock cheap di paesi est Europe! Grazie sven
Great timing on this video. Was looking through fundamentals of my stocks and was surprised how bad Nike is looking. I bought Nike in March and am up 57%. It's my best performing stock. Yet it has the worst numbers out of all my stocks. Will be selling Nike soon for cheniere energy partners, Molina healthcare, and a little more Intel. Looking forward to your Intel video on Wednesday!
that is the current market, we will see whether you will be right:-) No rationality:-(
Hi Sven. it would be very interesting to watch more european stocks analysis, not so famous like the american ones but maybe more profitable for the long term. Thanks for your youtube work, I'm glad that I can watch it.
here you go: svencarlin.com/category/austria-stock-exchange/
Thanks. Great video. Could you please look into Footlocker? Thanks.
Your catalogue or repertoire of work is unrivaled. You are like the RUclips Investing Library. U can find EVERYTHING you need to know here, if U just search hard enough 🙂 May U be blessed in measure with the value that you are putting out. You are changing lives I tell you. I'm actually going to make it a challenge to see if I can't view every Sven video b4 the end of 2023 😎😎
great analysis. Thanks. If you would invest in long term, which would you pick: CCL (Carnival) vs RCL (royal caribbbean), and BAC (bank of America) vs JPM (JPMorgan chase). Thanks.
Amazing video Sven! Thanks again for all the valuable content. I liked the comparison style video!
I would love to hear what you think about Pfizer!
Good video Sven as for a stock to recommand West Frase Timber Co now Lumber is at al time high maybe.
Hi Sven and thank you. Will you do STNE and MELI please.
Hey Sven, thks for the video. Some stocks recommendation Glencore
will make an analysis soon!
Thanks Sven for another great video. I want to point out a typo in your "global middle class outlook" chart @4:50... the legend should read "Middle East and North *Africa*". Just pointing it out because you might want to use the chart again.
I'll let the European commission know:-)
Hi Sven, thank you for the video!
Wondering if you can revisit Embraer after Boeing deal falling through and the stock price falling 4x-5x from the pre-covid highs.
Thanks for the great value and content!
hm, the low price is always an advantage but it is also a question whether I wish to own such businesses!.
@@Value-Investing exactly, even though the price has fallen, I am not here to buy the stock price :)
Really looking forward to your Intel analysis on wed. With AMD and nvidia stock priced so high due to amazing profit/growth recently, is there still value in Intel for the mid/long term.
VF Corporation might also be an interesting alternative! I see an increasing number of people with The Nortface brand all around me. Together with the other strong brand they have and a cheeper valuation and higher dividend than Nike and Adidas (maybe not currently because they have a larger impact bc of covid, due to less travel). A significant part of shares is also held by insiders and currently they are actively looking for aquisitions of companies that are in financial trouble. Since they have a good track record of building strong brands, I give them a high probability to benefiting long-term!
I am currently dollar cost averaging a small position, since it is still trading at quite a high valuation and significant influence of the lock-down, but I am hoping for a large dip to make this a large position in my portfolio!
Great video Sven. In which market is sold Adidas?
European but you also have the ADR OTC in US
Thanks a lot 🤜🤛🏾
Thank you Sven! I have always been cautious investing in clothing brands due to how trends can change over time. The moat can disappear due to new market entrants.
no moat but brand which is risky!
Interesting accounting fact regarding sales
Love the athleisure look. Where's your baseball hat. Thanks for the analysis. INTC looking forward to as it seems to be the only cheap semiconductor on the planet now.
Great analysis! I would like to hear about TiO2 producers like Cinkarna Celje :)
hm, zanimljivo! But tio2 is highly competitive from my last research on it:-( Plus cyclical
An interesting comparison will be LVMH vs richemont vs Swatch group. They are interesting companies and could become good if prices lower in the future
Hi Sven, have you ever given a think to make a video on Capital Structure? From your videos, one can conclude that debt is always a bad thing long-term. But leveraging a good business model, financing new business projects with cheaper debt, even protection from hostile takeovers, are all good examples of proper capital management. It would be nice to hear from you elaborating on the subject :)
debt is always good if managed well:-)
Hi Sven,
It would be interesting 🧐 to make a new comparison of the two companies. Adidas now have a PE of 15 .
As a subscriber of the Research platform I like your work . Adidas’s shoe are my favorite in my childhood
thanks for suggesting!!!
I
Analysis ideas: BASF, Givaudan, or CHR Hansen 🙂
Hi Sven, great video. I'm not sure whether you've covered it before, but I'd love to hear your views on P&G at some point. I'm not invested into it and I'm pretty sure it's an expensive buy at the moment. But it's a popular stock and I'm not sure I've seen you cover it before.
not in detail, thanks!
@@Value-Investing ok. It seems to come up on so many value screeners. A bit like Intel. Super looking forward to that one tomorrow
One problem to consider is as online sales are increasing, so are the incidences of counterfeiting, which may eat into sales.
Please also make an analysis for Atlas Copco Sweden. Thanks.
Hi Sven, here are two ideas that I recently analysed and that I think you will find interesting. Both manufacturing and boring companies on the NYSE: Simpson Manufacturing (SSD) and Leggett and Platt (LEG). If I can get a PE below 20, I think I will buy.
Sven, please look at GLNCY. I like them longer term for macro reasons.
Of course one of my top 3 financial youtubers did look into this great company (adidas)! How could i have any doubt ^^
After some more research during the remaining week i hope to buy my first few shares.
Loving the current market! 💛
Glad you like them!
Thoughts of Fortum the energy company after buying majority of Uniper?
I am not sure if you have done an analysis on Beyond Meat but I would like your insight on it. I have just purchased 5 shares as a start position in the company after doing some research on the company. Big fan of your content.
haven't done an analysis but will!
Analysis ideas : Micron Technology (Pabrai is very bullish), Dropbox
Thank you 🙏 please compare NOKiA and ERicsson ( the future for 5G)
Sven, from where do you draw your data/statistics in order to make your charts? Which websites do you recommend for stock analysis?
annual reports!
Hi Sven, how about looking at Novo Nordisk? :)
not much to add there, we all know it, no!
Hi Sven, thanks for the comparison.
What do you think about Anta Sports (symbol: ANPDY)?
It's the third largest sportswear company by revenue and has much higher growth rates. It could be worth a look ;-).
Best regards from Germany
hm, looked at it a few times, never convinced me to look deeper, but you never know!
Thank you for your analysis.
Suggestions:
(CRRFY)
(PDRDF)
(COST)
thanks!
May I request the following stocks:
Rebounding Oil -> GAZPROM (MOEX: GAZP) vs TATNEFT (MOEX: TATN)
Rising Volatility -> FLOW TRADERS (EURONEXTAMS: FLOW) vs PLUS500 (LSE: PLUS)
Rising Ganing/Gambling Industry -> IGG (HK: 799) vs NAGACORP (HK: 3918)
flow traders is a tough one!
Please do an analysis of AMS. It's an Austrian company quoted at the Swiss stock exchange.
here you go: svencarlin.com/ams-ag-stock-analysis/
Sven,
Can you please analyse TWOU - looks like a good Growth stock, company provides online education services which is likely a growing sector in the future
Thank you for your Analysis . But there isn't any absolute analysis? to know whether investing in these companies is better or not than other industries
you have to compare that with your other options! I think there is much better!
🐲 In general I prefere US companies! For me Nike would be the pick at a much lower valuation.
I would be interested in Kimberly-Clark. It's a defensive dividend-stock, but with negative equity.
.
Please analyse BASF and British American Tobacco
I liked the style of the video... however I'm not sure where you got the PE ratios from on Bloomberg Adidas pe is about 90. ... Am I missing something?
depends on whether forward PE or last year PE!
@@Value-Investing Thanks! Then it makes sense! :)
Love you Sven
Can you analyze European Aerospace stocks ?
Thank you, maybe a company like Airbus or Dassault Aviation
Hey Sven, I have a suggestion for stock review:
Hannon Armstrong Sustainable Infrastructure (HASI): A REIT company that focuses on clean energies. Thank you for your great videos ;)
Hey Sven. I saw you were interested in Games Workshop "GAW" UK stock. It's been skyrocketing recently and I made good money on it, I would like to see your opinion how much the future of the company priced in already?!
My friends own it big, I didn't follow unfortunately!
Could you go over the umbrella company Nantworks and their publicly traded ones like NH and NK? They are run by the richest guy in Los Angeles.
Love your outfit xo
Adidas is amazing brand! Everyone knows adidas. Maybe I am biased, but I am lifelong fan.
Both are pricey for my book. I am long Skechers USA Inc Ticker: SKX worth to look. (Make your own research.)
Though i don't like that recent Long-Term Debt & Capital Lease Obligation has grown significantly.
Hey Sven how about Gazprom? Why is it being sold over the counter in USA unlike Yandex? I have been making lots of money on yandex but not getting gazprom yet. Russia has mob government , but low debt , huge natural resources and low taxes. Idea to to Russia video.
Do a RUclips search for Sven Carlin Gazprom.
Gazprom and the Russian stock market is well researched by Sven, However make another video about Gazprom will not bore me:-)))
Sven Carlin Gazprom vids:
ruclips.net/video/6xrkX7XKGGI/видео.html
ruclips.net/video/gzTtswcFSzE/видео.html
ruclips.net/video/ex_zASmSz0o/видео.html
Sven Carlin Russia Vids:
ruclips.net/video/NQRZwNrxjmU/видео.html
ruclips.net/video/rRaVmNjdZKw/видео.html
ruclips.net/video/gN1W32VQa3I/видео.html
Thanks will look it up. Agree that one more video about overall Russian market would be a great idea.
I wear a shoe on one foot and a thick wad of cash on the other, taped to the sole.
Sven, this may seem like a very difficult questions to answer, but if you had to only chose 1 company to invest in for the next 30 years to make 10% per year. What would it be?
Buy an etf like voo, vti, spy, etc. Its very hard to find a stock that will outperform the market over 30 years.
Berkshire Hathaway
@@thomaswittmann95 its hard for big companies to keep growing at double digits.
one from my portfolio:-)
Invest with Sven Carlin, Ph.D. looks like a need to invest in your research platform:)
Hi Sven, I would love to se MPC, after sell of speedway it could be interesting, while stock is still relativly down. Thank you.
can you make an analysis of "Givaudan" in Switzerland, an company with an incredible moat around the business and steady growth rates
haven't yet made a Swiss list!
I just ordered new Adidas 20 minutes ago haha :D
Adidas: All Day I Dream About....Sven(??) -sorry bad joke, Americans that grew up in the 80’s might get it
Almost every sports apparel I have is adidas. So obsessed by the brand that even keep buying cologne and sunglasses.
hahahahahahahaha
Lol is it like their old slogan? Its before my time. So not sure what you are on about?
ruclips.net/video/GdOmc8ZpkTk/видео.html
If I had to choose I would look at Poland stock exchange. I know it isn't a single stock as for your request but...
we looked, twice, nothing to discuss:-(
Look into ticker HNRG and CTRA. Coal has bottomed out and starting to turn around. These two companies are extremely under valued.
Stock to analyze
INTEL.
Thanks.
at your service: ruclips.net/video/N7gyJS9cryA/видео.html
Eastern europeans a grateful for this video.
Dr thank you for the videos over the years. The biggest question for long term investing in companies that spends billions on celebrity endorsements have they invested in athletes with great potential and stable Derrick Rose was given a giant contract before career altering injury. He enough to open a modern steel mill down the drain. God bless invest 10 percent off investment in solid Eastern Europe companies.
Adidas growth beast are Yeezys, Bounce, and Boost. Yeezy isn’t getting injured lol
@@juju10683 Thanks for the smile
I think a large part of the moat comes through sponsorships. If your a kid in a little footballclub and Ronaldo is your favourite Player your gonna want Nike footballshoes. And you probably wont Switch even as you get older. For me valuations are too high compared to other businesses. Some 5-10% growth exp. sell for 10 pe
Is it possible to track where Nutanix (ticker: NTNX) will be five years from now?
nope! only if you wait 5 years!
@@Value-Investing Nothing's a sure thing. Nutanix seems to be the biggest competitor to VMWare in the HCI/Virtualization/Systems Infrastructure Software space and recently teamed up with Intel to create a virtual learning lab. They're not profitable yet (negative earnings), but their software has been gaining traction with new customers for a while now and their sales and revenues have started growing even with COVID-19 (or perhaps because if it?). Their new subscription payment process has only been used since 2018. They are also one of the leading DaaS (Desktop as a Service) vendors on the planet. Right now they're a small cap cigar butt in value investing terms and their negative earnings would force us to label them a value trap, but from what I hear from VMWare and Nutanix users, they are beginning to encroach VMWare's market share and have make some acquisitions in the last 3 years to add to their software service portfolio. Since they mainly own software patents/copyrights and don't have lots of capital assets I think many people are mis-pricing the stock vs potential future earnings trough the subscription model. I could be dead wrong about this, but I've been watching them a couple years and they're only increasing their market share and the hybrid, cross-platform functionality of their systems which opens them up to a larger and larger potential customer base.
in Greece addidas started selling extremely well, outperforming Nike in teh years 2013-2018. then adidas stock price increase over 40%. the last year in Greece Nike has been blowing up again. so I expect Nike to gain against adidas.
May I know what's the rationale for dividing 100 by the respective PEs? Is that a ballpark % for long term growth rate? Oh I realized it's the Earnings Yield!
yes, earnings yield!
I don't really see a margin of safety here, looking forward to Intel analysis. Put some money in last week, with both dropping stockprice and the weak dollar, looking like a cashflowcow which is being oversold on sentiment.
intel is in trouble, no solid fundamentals imho
Maybe those smaller companies are getting more likes on TikTok because it's a new advertising service, allowing smaller & more nimble companies to jump ahead of the big boys? As well as Nike & Adidas being happy with Facebook & Instagram, since it's worked so well for them in the past.
good point!
Some experts expect stock crash near soon. What is your thought on that?
experts have been saying that for 40 years now:-) I buy good businesses so I don't have to care much about that!
Tonight its the Champions League final so what about football stocks AFC Ajax is a public company????
geen idee!
why is lukoil at p/e of 2.4 and p/b of 0,38 with 10% dividend whats wrong with the stock??? bargain or trap?? what am i missing?
that is Russia!
Hard to say European or US stocks when must of them are global companies with revenues from all over the world, how are you seeing it?
Global businesses:-)
I don't mean to be rude, Sven, but when I checked Adidas' (ETR:ADS) share price, the P/E ratio was listed as 93. That seems a little overpriced to me.
Is this the correct ticker: ADDYY? ttm P/E 34. If this is correct its way over priced, not much cheaper than Apple.
finance.yahoo.com/quote/ADDYY?p=ADDYY&.tsrc=fin-srch
I took the last financial year for a PE ratio!
@@Value-Investing So one to watch in case sanity suddenly returns to the market?
Fast Fashion has been on the rise these past few years but it only attracts the lower-income level consumers like tweens, teens, and college students.
All the dislikes are people that wear nike clothes but don’t even invest money😂
haha!
it might be interesting now.
thanks for suggesting.
Long Prettylittlething :D
I would love for you to do an analysis on momentum funds such as the iShares world momentum fund 👍
not really my momentum!
One of the interesting things I think about Nike is, who will be their next star? Stars like LeBron James and Cristiano Ronaldo will probably retire in the next five years, do Giannis or Mbappe really have the same loyal fan base and selling power like their predecessors?
interesting points, thanks!
My man wearing Adidas 😂😂😂😂
I'd be curious to know how many Tik-Tok likes converted to actual sales, Sven. A thumbs up on a smart phone is a lot cheaper than actually purchasing the shoes.
good question!
Can we even use TikTok to gauge the trend in Adidas if companies like Shein are boosted by influencers? uk.finance.yahoo.com/news/shein-deployed-army-tiktok-influencers-160309497.html
Hi
HeidelberCement Ag
Rheinmetall Ag
stock analyse please :)
will come!
I comment your Nike video and told you about Adidas. I am an athlete since all my life, Adidas has always been ahead of innovation. Adidas is into the Padel sport business, which is the fastest growing sport worldwide and soon will outpace tennis as the main racket sport. Adidas is the perpetual sponsor of FIFA and will always be as FIFA is mostly European. Adidas is leader and will soon come out with 4D printing shoes, that means you walk into an Adidas store, they measure the size and volume of your feet and any shoe you want to buy is 4D printed with your data. Nike is all about branding and copying famous athletes, their products are less quality and too repetitive. Adidas also innovates with a bigger collaboration business with the. most successful designers like Y-3, Ralph Simons , they have the Yeezy brand form Kenye, Alexander Wang,.... what does Nike have? Off white, that's all.
I would suggest that you look into Visa and MasterCard
svencarlin.com/visa-stock-analysis/
I do investments only in mining stocks. what is your view on ASX : SMR (standmore coal)? thanks
Could you find the time to check Neste? Oil and bio fuel company originally from Finland. I did my own research and invest meaningful part of my portfolio, and would wish to hear the opinion on an expert :-)
hm, Finland:-)
@@Value-Investing You like to look into non-traditional market, don't you? So take a peek to Finnish market, you may be surprised :-)