Critical Analysis: Wolverine World Wide (WWW) vs. Its Rivals

Wolverine World Wide (NYSE: WWW) is one of 8 publicly-traded companies in the “Footwear, except rubber” industry, but how does it contrast to its peers? We will compare Wolverine World Wide to similar companies based on the strength of its risk, analyst recommendations, institutional ownership, profitability, earnings, dividends and valuation.

Analyst Ratings

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This is a summary of recent ratings and target prices for Wolverine World Wide and its peers, 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 Competitors 59 362 519 12 2.51

Wolverine World Wide presently has a consensus target price of $28.41, indicating a potential downside of 1.70%. As a group, “Footwear, except rubber” companies have a potential upside of 5.75%. Given Wolverine World Wide’s peers stronger consensus rating and higher probable upside, analysts clearly believe Wolverine World Wide has less favorable growth aspects than its peers.

Profitability

This table compares Wolverine World Wide and its peers’ 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 Competitors -33.14% 14.66% 7.39%

Earnings & Valuation

This table compares Wolverine World Wide and its peers top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Wolverine World Wide $2.35 billion $300,000.00 17.62
Wolverine World Wide Competitors $1.62 billion -$13.75 million 15.76

Wolverine World Wide has higher revenue and earnings than its peers. Wolverine World Wide is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Volatility and Risk

Wolverine World Wide has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.Comparatively, Wolverine World Wide’s peers have a beta of 0.79, suggesting that their average stock price is 21% less volatile than the S&P 500.

Dividends

Wolverine World Wide pays an annual dividend of $0.24 per share and has a dividend yield of 0.8%. Wolverine World Wide pays out 14.6% of its earnings in the form of a dividend. As a group, “Footwear, except rubber” companies pay a dividend yield of 1.4% and pay out 24.4% of their earnings in the form of a dividend.

Insider and Institutional Ownership

95.5% of Wolverine World Wide shares are held by institutional investors. Comparatively, 79.4% of shares of all “Footwear, except rubber” companies are held by institutional investors. 5.7% of Wolverine World Wide shares are held by company insiders. Comparatively, 7.7% of shares of all “Footwear, except rubber” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Wolverine World Wide beats its peers on 8 of the 15 factors compared.

About Wolverine World Wide

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.

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