Wolverine World Wide (NYSE: WWW) and Caleres (NYSE:CAL) are both consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, institutional ownership, valuation, analyst recommendations, risk, profitability and earnings.
Insider and Institutional Ownership
95.5% of Wolverine World Wide shares are held by institutional investors. Comparatively, 89.7% of Caleres shares are held by institutional investors. 5.7% of Wolverine World Wide shares are held by company insiders. Comparatively, 6.2% of Caleres shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
This table compares Wolverine World Wide and Caleres’ gross 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||1.18||$300,000.00||$1.64||17.62|
|Caleres||$2.79 billion||0.52||$87.20 million||$2.16||15.56|
Caleres has higher revenue and earnings than Wolverine World Wide. Caleres is trading at a lower price-to-earnings ratio than Wolverine World Wide, indicating that it is currently the more affordable of the two stocks.
This table compares Wolverine World Wide and Caleres’ 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 $0.24 per share and has a dividend yield of 0.8%. Caleres pays an annual dividend of $0.28 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. Caleres pays out 13.0% 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. Caleres is clearly the better dividend stock, given its higher yield and lower payout ratio.
Volatility & Risk
Wolverine World Wide has a beta of 1, indicating that its stock price has a similar volatility profile to the S&P 500.Comparatively, Caleres has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500.
This is a breakdown of recent recommendations and price targets for Wolverine World Wide and Caleres, as provided by MarketBeat.com.
|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 price target of $28.41, suggesting a potential downside of 1.70%. Caleres has a consensus price target of $34.00, suggesting a potential upside of 1.19%. Given Caleres’ stronger consensus rating and higher possible upside, analysts clearly believe Caleres is more favorable than Wolverine World Wide.
Caleres beats Wolverine World Wide on 10 of the 15 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.
Caleres Company Profile
Caleres, Inc., a footwear company, retails and wholesales footwear. The company operates through Famous Footwear and Brand Portfolio segments. It offers licensed, branded, and private-label casual, dress, and athletic footwear products to women, men, and children. The company operates retail shoe stores primarily under the Famous Footwear and Naturalizer names, which offer brand-name athletic, casual, and dress shoes, including company-owned and licensed brands, such as LifeStride, Dr. Scholl's Shoes, Naturalizer, Fergalicious, Carlos by Carlos Santana, Circus by Sam Edelman, Sam Edelman, Franco Sarto, Vince, Via Spiga, Fergie, Rykä, Allen Edmonds, Diane von Furstenberg, and George Brown Bilt brands. It also sells its products through e-commerce Websites that include Famous.com, Naturalizer.com, Naturalizer.ca, AllenEdmonds.com, SamEdelman.com, DrSchollsShoes.com, Ryka.com, LifeStride.com, ViaSpiga.com, FrancoSarto.com, CarlosShoes.com, FergieShoes.com, and GeorgeBrownBilt.com. In addition, the company designs, sources, and markets footwear to retail stores, such as national chains, online retailers, department stores, mass merchandisers, independent retailers, and catalogs. Further, it retails and wholesales men's apparel, leather goods, and accessories. Caleres, Inc. operates 1,289 retail shoe stores in the United States, Canada, Guam, and Italy primarily under the Famous Footwear, Naturalizer, and Allen Edmonds names. The company was formerly known as Brown Shoe Company, Inc. and changed its name to Caleres, Inc. in May 2015. Caleres, Inc. was founded in 1878 and is headquartered in St. Louis, Missouri.
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