Birkenstock (NYSE:BIRK) and Amer Sports (NYSE:AS) Financial Survey

Amer Sports (NYSE:AS) and Birkenstock (NYSE:BIRK) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, analyst recommendations, institutional ownership, dividends, valuation and profitability.

Analyst Recommendations

This is a summary of current recommendations for Amer Sports and Birkenstock, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Amer Sports	0	3	12	1	2.88
Birkenstock	0	6	13	0	2.68

Amer Sports presently has a consensus price target of $44.59, indicating a potential upside of 52.59%. Birkenstock has a consensus price target of $52.50, indicating a potential upside of 53.63%. Given Birkenstock’s higher probable upside, analysts clearly believe Birkenstock is more favorable than Amer Sports.

Volatility & Risk

Amer Sports has a beta of 2.04, indicating that its share price is 104% more volatile than the S&P 500. Comparatively, Birkenstock has a beta of 1.3, indicating that its share price is 30% more volatile than the S&P 500.

Profitability

This table compares Amer Sports and Birkenstock’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Amer Sports	7.35%	11.18%	7.02%
Birkenstock	14.82%	13.36%	7.21%

Insider & Institutional Ownership

40.3% of Amer Sports shares are held by institutional investors. Comparatively, 19.9% of Birkenstock shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Amer Sports and Birkenstock”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Amer Sports	$6.57 billion	2.46	$427.40 million	$0.95	30.76
Birkenstock	$2.32 billion	2.62	$385.46 million	$2.13	16.04

Amer Sports has higher revenue and earnings than Birkenstock. Birkenstock is trading at a lower price-to-earnings ratio than Amer Sports, indicating that it is currently the more affordable of the two stocks.

About Amer Sports

Amer Sports, Inc. designs, manufactures, markets, distributes, and sells sports equipment, apparel, footwear, and accessories in Europe, the Middle East, Africa, the Americas, China, and the Asia Pacific. It operates through three segments: Technical Apparel, Outdoor Performance, and Ball & Racquet Sports. The Technical Apparel segment offers outdoor apparel, footwear, and accessories which includes climbing gear. The Outdoor Performance segment provides hiking and running footwear, functional apparel, skiing and snowboarding gear, and lifestyle footwear. The Ball & Racquet Sports segment offers sports equipment for tennis, baseball, american football, basketball, golf, and various other professional and recreational sports. This segment provides custom-fitting protective gear and apparel for baseball, softball, football, and lacrosse. It sells its products under the Arc'teryx, PeakPerformance, Salomon, Atomic, Armada, ENVE, Wilson, Louisville Slugger, DeMarini, EvoShield, and ATEC brands. The company distributes its products through retail stores, general sporting goods retailers, specialty stores, independently operated partner stores, and distributors, as well as its e-commerce websites, and retailer-owned and third-party e-commerce websites. The company was formerly known as Amer Sports Management Holding (Cayman) Limited and changed its name to Amer Sports, Inc. in August 2023. Amer Sports, Inc. was founded in 1950 and is based in Helsinki, Finland.

About Birkenstock

Birkenstock Holding plc manufactures and sells footwear products. It also offers sandals, shoes, closed-toe silhouettes, skincare products, and accessories. The company sells its products through e-commerce sites and a network of owned retail stores, as well as business-to-business channels. It operates in the United States, Brazil, Canada, Mexico, Europe, APMA, and internationally. Birkenstock Holding plc was founded in 1774 and is based in London, the United Kingdom. Birkenstock Holding plc is a subsidiary of BK LC Lux MidCo S.à r.l.