Wolverine World Wide (WWW) & Weyco Group (WEYS) Critical Analysis
Wolverine World Wide (NYSE: WWW) and Weyco Group (NASDAQ:WEYS) are both consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitabiliy, risk, dividends and earnings.
Valuation and Earnings
This table compares Wolverine World Wide and Weyco Group’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Wolverine World Wide||$2.51 billion||1.05||$261.70 million||$0.88||31.05|
|Weyco Group||$287.15 million||1.00||$26.51 million||$1.52||18.08|
Wolverine World Wide has higher revenue and earnings than Weyco Group. Weyco Group is trading at a lower price-to-earnings ratio than Wolverine World Wide, indicating that it is currently the more affordable of the two stocks.
This table compares Wolverine World Wide and Weyco Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Wolverine World Wide||3.47%||14.14%||5.65%|
Volatility & Risk
Wolverine World Wide has a beta of 0.94, meaning that its stock price is 6% less volatile than the S&P 500. Comparatively, Weyco Group has a beta of 0.69, meaning that its stock price is 31% less volatile than the S&P 500.
This is a summary of recent recommendations for Wolverine World Wide and Weyco Group, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Wolverine World Wide||1||4||3||0||2.25|
Wolverine World Wide currently has a consensus target price of $22.83, suggesting a potential downside of 16.42%. Weyco Group has a consensus target price of $26.00, suggesting a potential downside of 5.39%. Given Weyco Group’s higher probable upside, analysts plainly believe Weyco Group is more favorable than Wolverine World Wide.
Wolverine World Wide pays an annual dividend of $0.24 per share and has a dividend yield of 0.9%. Weyco Group pays an annual dividend of $0.88 per share and has a dividend yield of 3.2%. Wolverine World Wide pays out 27.3% of its earnings in the form of a dividend. Weyco Group pays out 57.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Institutional and Insider Ownership
92.8% of Wolverine World Wide shares are held by institutional investors. Comparatively, 32.1% of Weyco Group shares are held by institutional investors. 5.7% of Wolverine World Wide shares are held by company insiders. Comparatively, 42.8% of Weyco Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Wolverine World Wide beats Weyco Group on 10 of the 16 factors compared between the two stocks.
Wolverine World Wide Company Profile
Wolverine World Wide, Inc. is a designer, manufacturer and marketer of a range of casual footwear and apparel, outdoor and athletic footwear and apparel, children’s footwear, industrial work boots and apparel, and uniform shoes and boots. It operates in four segments: Wolverine Outdoor & Lifestyle Group, which offers Merrell footwear and apparel, Cat footwear, Hush Puppies footwear and apparel, Chaco footwear, and Sebago footwear and apparel; Wolverine Boston Group, which offers Sperry footwear and apparel, Saucony footwear and apparel, and Keds footwear and apparel; Wolverine Heritage Group, which offers Wolverine footwear and apparel, Bates uniform footwear, Harley-Davidson footwear and HyTest safety footwear, and Wolverine Multi-Brand Group, which offers Stride Rite footwear and apparel, and its multi-brand consumer-direct businesses. It also operates a performance leather business. The Wolverine Leathers Division markets pigskin leather for use primarily in the footwear industry.
Weyco Group Company Profile
Weyco Group, Inc. is engaged in the design and distribution of footwear. The Company designs and markets footwear for men, women and children. The Company operates through two segments: the North American wholesale segment (wholesale) and the North American retail segment (retail). The Company also has other wholesale and retail businesses overseas, which include its businesses in Australia, South Africa and Asia Pacific (collectively known as Florsheim Australia), and its wholesale and retail businesses in Europe (Florsheim Europe). Its products consist of leather dress shoes and casual footwear composed of man-made materials or leather. In addition, the Company offers outdoor boots, shoes and sandals. As of December 31, 2016, the Company’s shoes were marketed throughout the United States and Canada in over 10,000 shoe, clothing and department stores. As of December 31, 2016, the retail segment consisted of 13 Company-operated stores and an Internet business in the United States.
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