Skechers U.S.A. (NYSE: SKX) and Wolverine World Wide (NYSE:WWW) are both mid-cap consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, earnings, valuation, risk, analyst recommendations, profitability and institutional ownership.
Earnings & Valuation
This table compares Skechers U.S.A. and Wolverine World Wide’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Skechers U.S.A.||$3.82 billion||1.12||$430.72 million||$1.44||18.72|
|Wolverine World Wide||$2.52 billion||0.99||$270.90 million||$0.85||30.36|
Skechers U.S.A. has higher revenue and earnings than Wolverine World Wide. Skechers U.S.A. 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 Skechers U.S.A. and Wolverine World Wide’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Wolverine World Wide||3.32%||15.81%||6.30%|
Insider & Institutional Ownership
67.9% of Skechers U.S.A. shares are held by institutional investors. Comparatively, 91.0% of Wolverine World Wide shares are held by institutional investors. 21.7% of Skechers U.S.A. shares are held by insiders. Comparatively, 5.7% of Wolverine World Wide shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Wolverine World Wide pays an annual dividend of $0.24 per share and has a dividend yield of 0.9%. Skechers U.S.A. does not pay a dividend. Wolverine World Wide pays out 28.2% of its earnings in the form of a dividend.
This is a summary of current ratings and price targets for Skechers U.S.A. and Wolverine World Wide, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Wolverine World Wide||1||4||2||0||2.14|
Skechers U.S.A. currently has a consensus target price of $31.00, indicating a potential upside of 15.03%. Wolverine World Wide has a consensus target price of $23.00, indicating a potential downside of 10.89%. Given Skechers U.S.A.’s stronger consensus rating and higher probable upside, equities analysts plainly believe Skechers U.S.A. is more favorable than Wolverine World Wide.
Volatility and Risk
Skechers U.S.A. has a beta of 0.18, indicating that its share price is 82% less volatile than the S&P 500. Comparatively, Wolverine World Wide has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500.
Skechers U.S.A. beats Wolverine World Wide on 12 of the 16 factors compared between the two stocks.
About Skechers U.S.A.
Skechers U.S.A., Inc. is a designer and marketer of Skechers-branded lifestyle footwear for men, women and children, and performance footwear for men and women under the Skechers GO brand name. The Company operates through three segments: domestic wholesale sales, international wholesale sales, and retail sales, which includes e-commerce sales. Its lifestyle brands include Skechers USA, Skechers Sport, Skechers Active and Skechers Sport Active, Skechers Originals, BOBS from Skechers and Mark Nason. Its Performance Brands include Skechers Performance, Skechers Kids and Skechers Work. Its footwear is sold through a range of department stores and specialty retail stores and mid-tier retailers, boutiques, among others. As of February 1, 2017, the Company owned and operated 117 concept stores, 163 factory outlet stores and 134 warehouse outlet stores in the United States, and 101 concept stores, 51 factory outlet stores, and five warehouse outlet stores internationally.
About Wolverine World Wide
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.
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