ADDYY vs. NKE: Which Stock Is the Better Value Option?

Core Viewpoint - Investors in the Shoes and Retail Apparel sector should consider Adidas AG (ADDYY) and Nike (NKE) for potential value opportunities, with Adidas currently presenting a better value proposition [1]. Valuation Metrics - Adidas AG has a Zacks Rank of 2 (Buy), indicating a more favorable earnings estimate revision activity compared to Nike, which has a Zacks Rank of 4 (Sell) [3]. - The forward P/E ratio for Adidas is 23.11, significantly lower than Nike's forward P/E of 45.51, suggesting that Adidas is undervalued relative to Nike [5]. - Adidas has a PEG ratio of 0.48, while Nike's PEG ratio is 2.79, indicating that Adidas is expected to grow earnings at a more attractive rate relative to its price [5]. - The P/B ratio for Adidas is 5.62, compared to Nike's P/B of 8.57, further supporting the notion that Adidas is more favorably valued [6]. Overall Assessment - Based on various valuation metrics, Adidas holds a Value grade of B, while Nike has a Value grade of D, indicating that Adidas is the superior option for value investors at this time [7].