Stock Comparison

NIO vs NKE

NIO Inc vs Nike Inc

Who's the better investment? Let's break it down.

The Verdict

NIO takes this one.

It's not even close. NIO outscores NKE by 8.0 points. That's a significant gap in our deep value framework.

Winner
NIO

NIO Inc

9.0

out of 10

Hidden Gem
NKE

Nike Inc

1.0

out of 10

Distressed

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Valuation

NIO

Metric

NKE

$11.6B

Market Cap

$65.8B
18.5

P/E Ratio

Lower may indicate better value

29.2
15.2

Forward P/E

29.5
1.8

Price/Book

6.8
12.0

EV/EBITDA

21.5

Profitability & Growth

NIO

Metric

NKE

-9.1%

Profit Margin

4.8%
15.7%

Gross Margin

40.8%
-7.8%

Operating Margin

6.0%
-99.5%

Return on Equity

16.4%
-7.9%

Return on Assets

6.0%
48.8%

Revenue Growth

-2.7%
$-3.96

EPS

$1.52

Financial Health

NIO

Metric

NKE

4.6

Debt-to-Equity

Lower = less leverage

0.6
1.0

Current Ratio

Above 1.0 is healthy

2.2
0.9

Beta

Lower = less volatile

1.1
None

Dividend Yield

3.7%

Risk Comparison

NIO

Overall
Aggressive
Financial
Medium
Market
High
Competitive
High
Execution
Medium
Regulatory
Medium

What Could Go Wrong

NIO's nascent profitability, demonstrated by Q1 2026 EPS of $0.02, could prove unsustainable if intense price competition in China's mass-market EV segment, particularly affecting the new ONVO L80, pr...

Red Flags

  • 🚩Sustained net losses for two consecutive quarters post-Q1 2026 profit, indicating a failure to maint...
  • 🚩Significant deceleration in delivery growth below 50% YoY for two consecutive quarters, suggesting w...
  • 🚩Abandonment or significant delay of the Firefly brand launch beyond H1 2027, undermining the multi-b...

NKE

Overall
Moderate
Financial
Medium
Market
Medium
Competitive
High
Execution
Medium
Regulatory
Low

What Could Go Wrong

The turnaround strategy could fail to reignite growth in key markets like China and address 'lagging innovation,' leading to sustained margin compression and market share erosion. If Q2 FY2026 guidanc...

Red Flags

  • 🚩Q1 FY2026 EPS down 30-35% YoY with revenue only +0.1% to +1% YoY.
  • 🚩Gross margin declined 320 bps YoY in Q1 FY2026, with further contraction guided for Q2.
  • 🚩S&P Global revised outlook to Negative on April 17, 2026, citing profitability pressures.

Competitive Moat

NIO

Rating

🛡️ Narrow

Trend

📈 Expanding

Network Effects (Battery swap network increasing value with more users/stations)Switching Costs (BaaS subscribers, integrated service ecosystem)Brand Power (Premium positioning and user community in China)Intangible Assets/IP (Proprietary battery and ADAS technology)

NKE

Rating

🛡️ Wide

Trend

➡️ Eroding

Brand PowerIntangible Assets/IPEfficient Scale

Investment Thesis

NIO9.0/10

If NIO's multi-brand strategy (ONVO, Firefly) successfully expands its market reach into the mass-market segment while maintaining robust growth for its premium NIO brand, driving sustained triple-digit revenue growth and consistent quarterly profitability through FY2027 (building on Q1 2026 EPS of $0.02), then its market cap could re-rate to $50B-$70B by 2028, reflecting its unique battery swap i...

Full NIO Analysis
NKE1.0/10

Nike, while facing significant headwinds and undergoing a challenging turnaround, presents a potential long-term value opportunity for investors focused on a recovery play rather than hyper-growth. Its strong brand and balance sheet provide a foundation for eventual stabilization and a return to moderate growth, potentially yielding a 2-3x return from its current depressed levels if execution impr...

Full NKE Analysis

Price Targets & Strategy

Price Targets & Entry/Exit Strategy

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Growth Catalysts

Growth Catalysts Comparison

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Market Sentiment

Market Sentiment Analysis

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The Deep Dive

NIO9.0/10

NIO maintains strong potential for 10x growth, propelled by its strategic multi-brand expansion and a significant financial turnaround. The reported Q1 2026 profit (EPS $0.02) and 112.2% YoY revenue growth, coupled with a 19.0% gross margin, validate its path to sustainable profitability. Successful May 2026 deliveries, including the new ONVO L80, demonstrate effective execution. Analyst sentiment is improving, with a recent HSBC upgrade. Despite intense competition, NIO's expanding competitive ...

Full NIO Analysis
NKE1.0/10

NIKE, Inc. remains an iconic global brand with strong market leadership, but its inherent scale and current operational headwinds fundamentally limit its 10x growth potential within 3-5 years. Recent Q1 FY2026 earnings revealed significant declines in profitability (EPS -30%, gross margin -320 bps YoY) and cautious forward guidance, signaling ongoing "turnaround struggles." The S&P Global's 'Negative' outlook and analyst downgrades underscore a challenging environment marked by weak China demand...

Full NKE Analysis

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Not Financial Advice

This comparison is for educational purposes only. We are not financial advisors. Always do your own research and consult a qualified financial advisor before making investment decisions.

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