Financial Review: V.F. (NYSE:VFC) and Weyco Group (NASDAQ:WEYS)

Weyco Group (NASDAQ:WEYS) and V.F. (NYSE:VFC) are both consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, valuation, analyst recommendations and dividends.

Institutional & Insider Ownership

23.6% of Weyco Group shares are owned by institutional investors. Comparatively, 86.8% of V.F. shares are owned by institutional investors. 36.4% of Weyco Group shares are owned by company insiders. Comparatively, 1.5% of V.F. shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

Weyco Group pays an annual dividend of $1.12 per share and has a dividend yield of 2.5%. V.F. pays an annual dividend of $0.36 per share and has a dividend yield of 2.6%. Weyco Group pays out 30.9% of its earnings in the form of a dividend. V.F. pays out 52.2% 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.

Analyst Ratings

This is a summary of current ratings and recommmendations for Weyco Group and V.F., as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Weyco Group	0	1	0	0	2.00
V.F.	2	12	4	2	2.30

V.F. has a consensus target price of $18.21, suggesting a potential upside of 30.60%. Given V.F.’s stronger consensus rating and higher probable upside, analysts plainly believe V.F. is more favorable than Weyco Group.

Earnings and Valuation

This table compares Weyco Group and V.F.”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Weyco Group	$276.17 million	1.55	$23.08 million	$3.63	12.37
V.F.	$9.61 billion	0.57	$254.92 million	$0.69	20.20

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Weyco Group	12.39%	14.04%	11.28%
V.F.	2.88%	18.91%	3.26%

Risk & Volatility

Weyco Group has a beta of 0.88, indicating that its share price is 12% less volatile than the S&P 500. Comparatively, V.F. has a beta of 1.57, indicating that its share price is 57% more volatile than the S&P 500.

Summary

V.F. beats Weyco Group on 11 of the 18 factors compared between the two stocks.

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.

About V.F.

VF Corp. engages in the business of producing and marketing apparel, footwear, and accessories. It operates through the following segments: Outdoor, Active, Work, and Other. The Outdoor segment includes authentic outdoor-based lifestyle brands such as performance-based and outdoor apparel, footwear, and equipment. The Active segment focuses on activity-based lifestyle brands including active apparel, footwear, backpacks, luggage, and accessories. The Work segment offers work and work-inspired lifestyle brands with product offerings including apparel, footwear, and accessories. The Other segment refers to the sale of non-VF products and sourcing activities related to transition services. The company was founded by John Barbey in October 1899 and is headquartered in Denver, CO.