Although the S 500 is up 17.5% in 2023 (as of Aug. 2), not all companies have participated in the broader market's huge rally this year. For example, (NYSE: NKE) shares are down 8%, while Foot Locker (NYSE: FL) stock has dropped an alarming 33%. For those investors looking at beaten-down stocks for potential opportunities, maybe there's something here. 

When looking at these businesses, is Nike or Foot Locker the better buy? Let's take a closer look at the apparel and shoe specialist, as well as the retail company, to come up with a final conclusion. 

I don't believe there's any doubt that Nike's greatest strength lies in its brand. Over the past few decades, the company has invested heavily in bolstering its brand image across the world, which consumers identify with innovative, sleek, and high-quality clothing and shoes, as well as a winning mentality. People are inclined to pay premium prices, as evidenced by Nike's gross margin of 43.5% in fiscal 2023. 

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Source Fool.com