NKE (Nike Inc) vs S&P 500 Comparison

NKE

S&P 500

Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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NKE

S&P 500

Difference

1Y 3Y 5Y 10Y 15Y 20Y

NKE

S&P 500

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Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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S&P 500

NKE

DECK

ONON

7936

300979

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1Y 3Y 5Y 10Y 15Y 20Y

Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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Nike Inc
Glance View

Economic Moat

None

Market Cap

105.7B USD

Industry

Textiles, Apparel & Luxury Goods

In the mid-1960s, two visionary individuals – Phil Knight, a dynamic track athlete, and Bill Bowerman, a dedicated track coach – set in motion a venture that would transform into a global icon known as Nike, Inc. Initially operating under the name Blue Ribbon Sports, the company began by distributing Japanese-made footwear within the United States. The turning point came in 1971, when Nike unveiled its own line of shoes adorned with the now-famous Swoosh logo, symbolizing speed and movement. By leveraging innovative designs and endorsing charismatic athletes, such as Michael Jordan, Nike rapidly gained a foothold in the competitive athletic footwear and apparel market. The core of Nike's strategy has always been a relentless focus on branding, innovation, and strategic marketing, firmly positioning itself as a leader in this dynamic industry. Today, Nike stands as a titan of the global sportswear industry, boasting an expansive portfolio that stretches beyond footwear to include apparel, equipment, and accessories across a myriad of sports. The company's business model revolves around a vertically integrated supply chain that ensures efficiency from design to sales, with a significant portion of manufacturing outsourced to international factories. Nike drives revenue through a mix of direct-to-consumer sales via their online platforms and brick-and-mortar stores, alongside traditional retail partnerships. Sponsorships and endorsements with top athletes keep Nike's brand at the forefront of consumer consciousness, sustaining the aspirational ethos that fuels their success. This strategic combination of innovation, market penetration, and endorsements solidifies Nike's dominant position and ensures its continued financial growth and cultural relevance.

View NKE Analysis

NKE Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

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US	Deckers Outdoor Corp NYSE:DECK	Select
CH	On Holding AG NYSE:ONON	Select
JP	Asics Corp TSE:7936	Select
CN	Huali Industrial Group Co Ltd SZSE:300979	Select
UK	Birkenstock Holding PLC NYSE:BIRK	Select
US	Skechers USA Inc NYSE:SKX	Select
DE	Puma SE XETRA:PUM	Select
US	Crocs Inc NASDAQ:CROX	Select
TW	Feng Tay Enterprises Co Ltd TWSE:9910	Select
HK	Yue Yuen Industrial (Holdings) Ltd HKEX:551	Select

US	Deckers Outdoor Corp NYSE:DECK	Add
CH	On Holding AG NYSE:ONON	Add
JP	Asics Corp TSE:7936	Add
CN	Huali Industrial Group Co Ltd SZSE:300979	Add
UK	Birkenstock Holding PLC NYSE:BIRK	Add
US	Skechers USA Inc NYSE:SKX	Add
DE	Puma SE XETRA:PUM	Add
US	Crocs Inc NASDAQ:CROX	Add
TW	Feng Tay Enterprises Co Ltd TWSE:9910	Add
HK	Yue Yuen Industrial (Holdings) Ltd HKEX:551	Add

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NKE

vs

S&P 500

Stocks Performance
NKE vs S&P 500

Performance Gap
NKE vs S&P 500

Performance By Year
NKE vs S&P 500

Competitors Performance
Nike Inc vs Peers

Nike Inc
Glance View

Company

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NKE vs S&P 500

Stocks Performance NKE vs S&P 500

Performance Gap NKE vs S&P 500

Performance By Year NKE vs S&P 500

Competitors Performance Nike Inc vs Peers

Nike Inc Glance View

Company

Help

Tools

Stocks

NKE

vs

S&P 500

Stocks Performance
NKE vs S&P 500

Performance Gap
NKE vs S&P 500

Performance By Year
NKE vs S&P 500

Competitors Performance
Nike Inc vs Peers

Nike Inc
Glance View