Nike vs Target
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KIRA’s take AI analyst
I put Nike and Target side by side, using each one’s latest annual report. Here is what stands out:
- Target is the larger business, with $104.8B of revenue in fiscal 2025 against $46.4B for Nike, about 2.3 times as much.
- Nike grew revenue faster (0.2%, against −1.7%).
- Nike turned more of its sales into free cash flow (4.7% FCF margin, against 2.7%).
- Nike earned a higher return on the capital invested in it (26.1%, against 15.0%).
- Investors pay more for each dollar of Nike’s earnings: a P/E of 18.2x against 15.4x for Target.
Who comes out ahead
Of the 10 measures where higher (or lower) is clearly better, how many each company leads.
Nike
NKE
7/10
Revenue growthGross marginNet marginFCF marginReturn on capitalPiotroski F-scoreNet debt / EBITDA
Target
TGT
3/10
5-year growthReturn on equityShare count change
Side by side
Best in the row
| Latest fiscal year | NKE FY26 | TGT FY25 |
|---|---|---|
| Size | ||
| Market cap | $56.3B | $67.8B |
| Revenue | $46.4B | $104.8B |
| Free cash flow | $2.2B | $2.8B |
| Net income | $3.1B | $3.7B |
| Growth | ||
| Revenue growth | 0.2% | −1.7% |
| 5-year growth | 0.8% | 2.3% |
| Share count change | −0.4% | −1.3% |
| Profitability | ||
| Gross margin | 42.9% | 27.9% |
| Operating margin | — | 4.9% |
| Net margin | 6.7% | 3.5% |
| FCF margin | 4.7% | 2.7% |
| Return on capital | 26.1% | 15.0% |
| Return on equity | 22.1% | 24.0% |
| Balance sheet | ||
| Net debt | −$1.1B | $11.0B |
| Net debt / EBITDA | −0.2x | 1.3x |
| Dividends and buybacks | $2.6B | $2.5B |
| Valuation & quality | ||
| P/E | 18.2x | 15.4x |
| Piotroski F-score | 7 | 6 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.