Comparing Xcel Brands (NASDAQ:XELB) & Weyco Group (NASDAQ:WEYS)

Xcel Brands (NASDAQ:XELB) and Weyco Group (NASDAQ:WEYS) are both small-cap consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, valuation, dividends, earnings, risk, analyst recommendations and institutional ownership.

Insider & Institutional Ownership

18.5% of Xcel Brands shares are held by institutional investors. Comparatively, 23.6% of Weyco Group shares are held by institutional investors. 29.5% of Xcel Brands shares are held by insiders. Comparatively, 36.4% of Weyco Group shares are held by 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.

Earnings & Valuation

This table compares Xcel Brands and Weyco Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Xcel Brands	$4.94 million	1.12	-$17.46 million	($3.39)	-0.25
Weyco Group	$276.17 million	1.59	$23.08 million	$3.63	12.69

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

Volatility and Risk

Xcel Brands has a beta of 1.25, indicating that its stock price is 25% more volatile than the S&P 500. Comparatively, Weyco Group has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Xcel Brands and Weyco Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xcel Brands	1	0	0	0	1.00
Weyco Group	0	0	1	0	3.00

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Xcel Brands	-343.68%	-109.17%	-42.19%
Weyco Group	12.39%	14.04%	11.28%

Summary

Weyco Group beats Xcel Brands on 12 of the 13 factors compared between the two stocks.

About Xcel Brands

Xcel Brands, Inc., together with its subsidiaries, operates as a media and consumer products company in the United States. The company designs, produces, markets, wholesales, and sells branded apparel, footwear, accessories, jewelry, home goods, and other consumer products; and acquires consumer lifestyle brands, including the Isaac Mizrahi, the LOGO by Lori Goldstein, the Judith Ripka, the Halston brand, the C Wonder, the TowerHill by Christie Brinkley brand (the CB brand), and other brands, as well as manages the Longaberger brand. It licenses its brands to third parties; and designs, produces, markets, and distributes through an omni-channel retail sales strategy, which include distribution through interactive television, digital live-stream shopping, brick-and-mortar retail, and e-commerce channels. The company also offers live streaming, social media and other marketing, and public relations support for its brands. In addition, it markets its brands through www.isaacmizrahi.com; www.halston.com; www.judithripka.com; www.cwonder.com; www.lorigoldstein.com; and www.longaberger.com. Xcel Brands, Inc. was founded in 2011 and is headquartered in New York, New York.

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.