The purpose of this research is to perform a comparative analysis of the common stocks of Nike, Inc. and Reebok International, Ltd. for the purpose of developing an investment recommendation. Thus, the research question addressed is as follows: "Which of these two common stocks--Nike or Reebok, if either, is recommended for investment?"
Both Nike and Reebok participate in the same industrial classifications. Financial performance for each company is reported with other firms competing in the shoe industry, although both Nike and Reebok also design, develop, and market apparel products (Rindos, 1992a, p. 1661; Rindos, 1992b, p. 1662). Both firms market high-quality leisure and athletic footware products.
The data required for this comparative analysis were obtained from published sources. Indexes of business and financial publications were consulted to identify appropriate sources. Additionally, the Value Line Investment Survey and The Wall Street Journal were consulted to obtain the most recent and detailed financial data.
The Nike equity stock traded in the stock market is the company's Class B common stock (Rindos, 1992a, p. 1661). The stock is traded on the New York Stock Exchange, where its identifying symbol is "NKE" (Rindos, 1992a, p. 1661). Reebok's common stock is also traded on the New York Stock Exchange. The stock's identifying symbol is "RBK" (Rindos, 1992b, p. 1662).
The findings of this comparative analysis are presented in three separate discussions. The first of these discussions deals with operational aspects of the two firms. Consumer attitudes towards the firms and their products are considered in the second discussion. The last of the three discussions presents data relative to the financial performance of Nike and Reebok.
Operational Aspects of the Performance
of Nike, Inc. and Reebok International
Reebok International is an American-based firm that sources its products primaril...