Head to Head Analysis: Weyco Group (NASDAQ:WEYS) vs. The Swatch Group (OTCMKTS:SWGNF)

The Swatch Group (OTCMKTS:SWGNF) and Weyco Group (NASDAQ:WEYS) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.

Earnings and Valuation

This table compares The Swatch Group and Weyco Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
The Swatch Group	N/A	N/A	N/A	$6.69	6.66
Weyco Group	$276.17 million	1.53	$23.08 million	$3.63	12.19

Weyco Group has higher revenue and earnings than The Swatch Group. The Swatch Group is trading at a lower price-to-earnings ratio than Weyco Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares The Swatch Group and Weyco Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
The Swatch Group	N/A	N/A	N/A
Weyco Group	12.39%	14.04%	11.28%

Analyst Ratings

This is a breakdown of recent recommendations for The Swatch Group and Weyco Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
The Swatch Group	0	0	0	0	0.00
Weyco Group	0	0	1	0	3.00

Institutional and Insider Ownership

5.1% of The Swatch Group shares are held by institutional investors. Comparatively, 23.6% of Weyco Group shares are held by institutional investors. 36.4% of Weyco Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

The Swatch Group pays an annual dividend of $1.50 per share and has a dividend yield of 3.4%. Weyco Group pays an annual dividend of $1.12 per share and has a dividend yield of 2.5%. The Swatch Group pays out 22.4% of its earnings in the form of a dividend. Weyco Group pays out 30.9% 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. Weyco Group has increased its dividend for 3 consecutive years. The Swatch Group is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Weyco Group beats The Swatch Group on 10 of the 13 factors compared between the two stocks.

About The Swatch Group

The Swatch Group AG designs, manufactures, and sells finished watches, jewelry, and watch movements and components worldwide. The company operates through Watches & Jewelry and Electronic Systems segments. The Watches & Jewelry segment designs, produces, and commercializes watches and jewelry. The Electronic Systems segment engages in the design, production, and commercialization of electronic components, as well as sports timing activities. It is also involved in the provision of assembly, research and development, administration, polishing, logistics and distribution, and customer services; and hard material products, microelectronics, watch cases and crowns, miniature low-frequency quartz crystals, thin wires, miniature batteries, watch dials, watch hands, bracelets, sports timing technology and equipment, precision parts, and assembly electronic components. In addition, the company engages in retail, communication, real estate, real estate management, finance, reinsurance, and art center businesses. It offers its watch and jewelry products primarily under the Breguet, Harry Winston, Blancpain, Glashütte Original, Jaquet Droz, Léon Hatot, Omega, Longines, Rado, Union Glashütte, Tissot, Balmain, Certina, Mido, Hamilton, Swatch, and Flik Flak brands. The Swatch Group AG was founded in 1983 and is headquartered in Biel/Bienne, Switzerland.

About Weyco Group

Weyco Group, Inc. designs and distributes footwear for men, women, and children. It operates in two segments, North American Wholesale Operations and North American Retail Operations. The company offers mid-priced leather dress shoes and casual footwear of man-made materials and leather; and outdoor boots, shoes, and sandals under the Florsheim, Nunn Bush, Stacy Adams, BOGS, Rafters, and Forsake brands. It is also involved in the wholesale of its products to footwear, department, and specialty stores, as well as e-commerce retailers in the United States and Canada. The company operates e-commerce business; and brick and mortar retail stores in the United States. In addition, it has licensing agreements with third parties, who sell its branded apparel, accessories, and specialty footwear. It operates in the United States, Canada, Australia, and South Africa. The company was formerly known as Weyenberg Shoe Manufacturing Company and changed its name to Weyco Group, Inc. in April 1990. Weyco Group, Inc. was incorporated in 1906 and is based in Milwaukee, Wisconsin.