Weyco Group (NASDAQ:WEYS – Get Free Report) and Levi Strauss & Co. (NYSE:LEVI – Get Free Report) are both consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, earnings, risk, analyst recommendations, dividends and valuation.
Earnings & Valuation
This table compares Weyco Group and Levi Strauss & Co.”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 | 1.69 | $23.08 million | $3.63 | 13.44 |
| Levi Strauss & Co. | $6.61 billion | 1.13 | $578.10 million | $1.62 | 12.01 |
Dividends
Weyco Group pays an annual dividend of $1.12 per share and has a dividend yield of 2.3%. Levi Strauss & Co. pays an annual dividend of $0.64 per share and has a dividend yield of 3.3%. Weyco Group pays out 30.9% of its earnings in the form of a dividend. Levi Strauss & Co. pays out 39.5% 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 and Levi Strauss & Co. has increased its dividend for 4 consecutive years. Levi Strauss & Co. is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Insider & Institutional Ownership
23.6% of Weyco Group shares are held by institutional investors. Comparatively, 69.1% of Levi Strauss & Co. shares are held by institutional investors. 36.4% of Weyco Group shares are held by insiders. Comparatively, 1.1% of Levi Strauss & Co. shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Risk and Volatility
Weyco Group has a beta of 0.89, suggesting that its share price is 11% less volatile than the S&P 500. Comparatively, Levi Strauss & Co. has a beta of 1.32, suggesting that its share price is 32% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings and target prices for Weyco Group and Levi Strauss & Co., as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Weyco Group | 0 | 0 | 1 | 0 | 3.00 |
| Levi Strauss & Co. | 0 | 3 | 12 | 0 | 2.80 |
Levi Strauss & Co. has a consensus price target of $27.43, suggesting a potential upside of 41.02%. Given Levi Strauss & Co.’s higher possible upside, analysts clearly believe Levi Strauss & Co. is more favorable than Weyco Group.
Profitability
This table compares Weyco Group and Levi Strauss & Co.’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% |
| Levi Strauss & Co. | 9.66% | 25.79% | 8.61% |
Summary
Levi Strauss & Co. beats Weyco Group on 9 of the 17 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 Levi Strauss & Co.
Levi Strauss & Co. engages in the design, marketing, and sale of apparel products. The company offers jeans, casual and dress pants, tops, shorts, skirts, jackets, footwear, and related accessories. It operates through the following geographical segments: Americas, Europe, and Asia. The company was founded by Levi Strauss in 1853 and is headquartered in San Francisco, CA.
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