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Sneaker wars: Nike vs. Under Armour

Lebron James and Stephen Curry
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Lebron James and Stephen Curry

Nike introducing consumers to a new product that's taking us back to the future.

The athletic footwear giant unveiling a new self-lacing sneaker.

Read More Nike Launches HyperAdapt 1.0 'self-lacing' sneaker

Is the new sneaker enough to fuel Nike's Future?

From a stock perspective, Nike outperforming competitor Under Armour over the past year.

But looking at Nike versus Under Armour since the start of 2016, Under armour showing it has game as it makes a move to catch up.

If you had to pick just one stock to buy, which would you chose, Nike or Under Armour?

BB&T's Senior Equity Analyst, Corinna Freedman making the case for Nike.

Here's four basic reasons why she would own Nike over Under Armour:

1. Athletic footwear is outperforming athleticapparel. Freedman says Nike is morefocused on footwear while Under Armour's focus is on apparel.

2. Inventory builds across the industry have beenprimarily in athletic apparel. Freedmansays Nike is viewed as a more premium athletic product and believes is somewhatinsulated from the market share battles among the mid and lower tier productwhere Under Armour primarily competes.

3. Olympics catalyst more of a benefit toNike. Freedman believes the beneficialtime zone of these games this year vs. prior games should add to increasedviewership and ultimately, given Nike's more developed Global distributionnetwork vs. Under Armour, She sees Nike benefiting more from this catalyst.

4. Valuation. Freedman is bearish only on the Under Armour stock. Saying BB&T sees no issue with the fundamentalscurrently. Freedman goes on to sayvaluations for the entire group post-trend are likely to move more in line withNike's historical trend and in that scenario, she sees NKE trading morefavorably given its lower multiple.