Financial Survey: Wolverine World Wide (WWW) vs. Skechers U.S.A. (SKX)

Wolverine World Wide (NYSE: WWW) and Skechers U.S.A. (NYSE:SKX) are both mid-cap consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, valuation, institutional ownership, risk, profitability, earnings and analyst recommendations.

Volatility & Risk

Wolverine World Wide has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500. Comparatively, Skechers U.S.A. has a beta of 0.18, suggesting that its stock price is 82% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for Wolverine World Wide and Skechers U.S.A., 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. 1 3 8 0 2.58

Wolverine World Wide presently has a consensus target price of $23.00, indicating a potential downside of 13.66%. Skechers U.S.A. has a consensus target price of $31.00, indicating a potential upside of 5.69%. Given Skechers U.S.A.’s stronger consensus rating and higher possible upside, analysts clearly believe Skechers U.S.A. is more favorable than Wolverine World Wide.

Valuation & Earnings

This table compares Wolverine World Wide and Skechers U.S.A.’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 $2.52 billion 1.02 $270.90 million $0.85 31.34
Skechers U.S.A. $3.82 billion 1.19 $430.72 million $1.44 20.37

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.

Insider & Institutional Ownership

91.7% of Wolverine World Wide shares are owned by institutional investors. Comparatively, 65.1% of Skechers U.S.A. shares are owned by institutional investors. 5.7% of Wolverine World Wide shares are owned by company insiders. Comparatively, 21.7% of Skechers U.S.A. shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Wolverine World Wide and Skechers U.S.A.’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%
Skechers U.S.A. 5.92% 12.79% 9.35%

Dividends

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.

Summary

Skechers U.S.A. beats Wolverine World Wide on 11 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.

Skechers U.S.A. Company Profile

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.

What are top analysts saying about Wolverine World Wide Inc.? - Enter your email address in the form below to receive our free daily email newsletter that contains the latest headlines and analysts' recommendations for for Wolverine World Wide Inc. and related companies.

Comments

Leave a Reply


share news on Facebook
tweet this investment news
share on linkedin
share on StockTwits
share on Google Plus
share on reddit