Wolverine World Wide (NYSE:WWW – Get Free Report) and Adidas (OTCMKTS:ADDYY – Get Free Report) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, earnings, institutional ownership, profitability, analyst recommendations and dividends.
Profitability
This table compares Wolverine World Wide and Adidas’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Wolverine World Wide | 4.73% | 31.99% | 5.97% |
| Adidas | 4.93% | 20.68% | 5.99% |
Dividends
Wolverine World Wide pays an annual dividend of $0.40 per share and has a dividend yield of 1.3%. Adidas pays an annual dividend of $0.76 per share and has a dividend yield of 0.8%. Wolverine World Wide pays out 39.2% of its earnings in the form of a dividend. Adidas pays out 20.7% 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.
Volatility & Risk
Analyst Recommendations
This is a summary of recent recommendations and price targets for Wolverine World Wide and Adidas, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Wolverine World Wide | 0 | 1 | 7 | 1 | 3.00 |
| Adidas | 0 | 3 | 3 | 3 | 3.00 |
Wolverine World Wide presently has a consensus price target of $25.38, indicating a potential downside of 19.41%. Given Wolverine World Wide’s higher possible upside, research analysts clearly believe Wolverine World Wide is more favorable than Adidas.
Valuation and Earnings
This table compares Wolverine World Wide and Adidas”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Wolverine World Wide | $1.76 billion | 1.46 | $47.90 million | $1.02 | 30.87 |
| Adidas | $25.63 billion | 1.36 | $826.72 million | $3.67 | 26.68 |
Adidas has higher revenue and earnings than Wolverine World Wide. Adidas 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.
Institutional and Insider Ownership
90.3% of Wolverine World Wide shares are held by institutional investors. 2.3% of Wolverine World Wide shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Summary
Wolverine World Wide beats Adidas on 9 of the 16 factors compared between the two stocks.
About Wolverine World Wide
Wolverine World Wide, Inc. designs, manufactures, sources, markets, licenses, and distributes footwear, apparel, and accessories in the United States, Europe, the Middle East, Africa, the Asia Pacific, Canada and Latin America. It operates through Active Group and Work Group segments. The company offers casual footwear and apparel; performance outdoor and athletic footwear and apparel; kids' footwear; industrial work boots and apparel; and uniform shoes and boots. The company sources and markets a range of footwear and apparel styles, including shoes, boots and sandals under the Bates, Cat, Chaco, Harley-Davidson, Hush Puppies, Hytest, Merrell, Saucony, Sperry, Keds, Sweaty Betty, and Wolverine brands; and licenses under the Stride Rite brand. It also markets Merrell and Wolverine branded apparel and accessories, as well as licenses its brands for use on non-footwear products, including the Hush Puppies apparel, eyewear, watches, socks, handbags, and plush toys; and Wolverine branded eyewear and gloves. In addition, the company markets pigskin leather under the Wolverine Leather division; sourcing division provides consulting services related to product development, production control, quality assurance, materials procurement, compliance, and other service; and multi-brand direct-to-consumer division includes retail stores that sell footwear and apparel of its brand portfolio. Further, it sells its products to department stores, national chains, catalog and specialty retailers, independent retailers, uniform outlets, and mass merchant and government customers through retail stores, third-party licensees and distributors, and joint ventures; and operates brick and mortar retails stores, and e-commerce sites. Additionally, the company operates through a network of retail stores and e-commerce sites. Wolverine World Wide, Inc. was founded in 1883 and is headquartered in Rockford, Michigan.
About Adidas
adidas AG, together with its subsidiaries, designs, develops, produces, and markets athletic and sports lifestyle products in Europe, the Middle East, Africa, North America, Greater China, the Asia-Pacific, and Latin America. It offers footwear, apparel, and accessories and gear, such as bags and balls under the adidas brand; golf footwear and apparel under the adidas Golf brand; and outdoor footwear under the Five Ten brand. It sells its products through its own retail stores; mono-branded franchise stores and shop-in-shops; and wholesale and its e-commerce channels. The company was formerly known as adidas-Salomon AG and changed its name to adidas AG in June 2006. adidas AG was founded in 1920 and is headquartered in Herzogenaurach, Germany.
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