Wolverine World Wide (NYSE: WWW) and Steve Madden (NASDAQ:SHOO) are both mid-cap consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, dividends, valuation, institutional ownership and earnings.
Volatility and Risk
Wolverine World Wide has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500. Comparatively, Steve Madden has a beta of 0.47, meaning that its share price is 53% less volatile than the S&P 500.
This table compares Wolverine World Wide and Steve Madden’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Wolverine World Wide||$2.35 billion||1.22||$300,000.00||$1.64||18.13|
|Steve Madden||$1.55 billion||1.75||$117.94 million||$2.24||20.56|
Steve Madden has lower revenue, but higher earnings than Wolverine World Wide. Wolverine World Wide is trading at a lower price-to-earnings ratio than Steve Madden, indicating that it is currently the more affordable of the two stocks.
This table compares Wolverine World Wide and Steve Madden’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Wolverine World Wide||0.01%||16.20%||6.63%|
Wolverine World Wide pays an annual dividend of $0.32 per share and has a dividend yield of 1.1%. Steve Madden pays an annual dividend of $0.80 per share and has a dividend yield of 1.7%. Wolverine World Wide pays out 19.5% of its earnings in the form of a dividend. Steve Madden pays out 35.7% 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.
Insider and Institutional Ownership
95.5% of Wolverine World Wide shares are held by institutional investors. Comparatively, 95.5% of Steve Madden shares are held by institutional investors. 5.7% of Wolverine World Wide shares are held by insiders. Comparatively, 2.1% of Steve Madden shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
This is a summary of recent recommendations and price targets for Wolverine World Wide and Steve Madden, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Wolverine World Wide||0||8||4||0||2.33|
Wolverine World Wide presently has a consensus target price of $28.41, indicating a potential downside of 4.48%. Steve Madden has a consensus target price of $49.05, indicating a potential upside of 6.50%. Given Steve Madden’s stronger consensus rating and higher probable upside, analysts clearly believe Steve Madden is more favorable than Wolverine World Wide.
Steve Madden 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, and Chaco footwear; 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.
Steve Madden Company Profile
Steven Madden, Ltd. designs, sources, markets, and sells fashion-forward name brand and private label footwear for women, men, and children worldwide. Its Wholesale Footwear segment provides footwear under the Steve Madden Women's, Madden Girl, Steve Madden Men's, Madden, Madden NYC, Dolce Vita, DV by Dolce Vita, Mad Love, Steven by Steve Madden, Report, Superga, Betsey Johnson, Betseyville, Steve Madden Kids, FREEBIRD by Steven, Stevies, B Brian Atwood, Blondo, Kate Spade, and Avec Les Filles brands, as well as private label footwear. The company's Wholesale Accessories segment offers Big Buddha, Madden NYC, Betsey Johnson, Steve Madden, Steven by Steve Madden, Madden Girl, Cejon, B Brian Atwood, Luv Betsey, DKNY, and Donna Karan accessories brands; private label fashion handbags and accessories to department stores, mass merchants, value priced retailers, online retailers, and specialty stores; and cold weather accessories, fashion scarves, wraps, and other trend accessories primarily under Cejon, Steve Madden, Betsey Johnson, and Big Buddha brand names, as well as private labels to department stores and specialty stores. Its Retail segment operates Steve Madden, Steven, Superga, and International retail stores, as well as Steve Madden, Superga, Betsey Johnson, and Dolce Vita e-commerce Websites. As of December 31, 2017, the company owned and operated 206 retail stores. Its First Cost segment operates as a buying agent for footwear products under private labels for mass-market merchandisers, shoe chains, and other mid-tier retailers. The company's Licensing segment licenses its Steve Madden, Steven by Steve Madden, and Madden Girl trademarks. Steven Madden, Ltd. was founded in 1990 and is based in Long Island City, New York.
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