Head-To-Head Contrast: Wacoal (WACLY) vs. Guess? (GES)

Wacoal (OTCMKTS:WACLY) and Guess? (NYSE:GES) are both small-cap consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, dividends, risk, valuation, profitability and analyst recommendations.

Profitability

This table compares Wacoal and Guess?’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Wacoal 6.16% 5.11% 4.04%
Guess? 0.10% 8.12% 4.64%

Valuation & Earnings

This table compares Wacoal and Guess?’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Wacoal $1.77 billion 1.02 $87.70 million N/A N/A
Guess? $2.36 billion 0.79 -$7.89 million $0.70 32.77

Wacoal has higher earnings, but lower revenue than Guess?.

Insider & Institutional Ownership

0.0% of Wacoal shares are owned by institutional investors. Comparatively, 70.8% of Guess? shares are owned by institutional investors. 0.8% of Wacoal shares are owned by company insiders. Comparatively, 31.3% of Guess? shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Dividends

Wacoal pays an annual dividend of $1.37 per share and has a dividend yield of 1.0%. Guess? pays an annual dividend of $0.90 per share and has a dividend yield of 3.9%. Guess? pays out 128.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Ratings

This is a breakdown of current ratings and target prices for Wacoal and Guess?, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Wacoal 0 0 0 0 N/A
Guess? 0 3 1 0 2.25

Guess? has a consensus price target of $22.00, suggesting a potential downside of 4.10%. Given Guess?’s higher possible upside, analysts plainly believe Guess? is more favorable than Wacoal.

Volatility & Risk

Wacoal has a beta of 0.44, indicating that its share price is 56% less volatile than the S&P 500. Comparatively, Guess? has a beta of 0.2, indicating that its share price is 80% less volatile than the S&P 500.

Summary

Guess? beats Wacoal on 9 of the 14 factors compared between the two stocks.

Wacoal Company Profile

Wacoal Holdings Corp. designs, manufactures, and markets women's intimate apparel primarily in Japan. It operates through three segments: Wacoal Business (Domestic), Wacoal Business (Overseas), and Peach John. The company offers foundation garments, including brassieres and girdles; and lingerie, such as slips, bra-slips, and women's briefs. It also designs, manufactures, and sells nightwear, children's underwear, outerwear, sportswear, hosiery, and other apparel and textile goods, as well as provides various other services. In addition, the company engages in the restaurant businesses; cultural and service-related operations; construction of interiors for commercial premises; and production and sale of mannequins. It sells its apparel products on a wholesale basis to department stores, general merchandisers, and other general retailers through directly managed retail stores, catalogue sales, and the Internet. The company was founded in 1946 and is headquartered in Kyoto, Japan.

Guess? Company Profile

Guess?, Inc. designs, markets, distributes, and licenses lifestyle collections of apparel and accessories for men, women, and children. It operates through five segments: Americas Retail, Americas Wholesale, Europe, Asia, and Licensing. The company's clothing collection includes jeans, pants, skirts, dresses, shorts, blouses, shirts, jackets, knitwear, and intimate apparel. It also grants licenses to manufacture and distribute various products that complement its apparel lines, such as eyewear, watches, handbags, footwear, kids' and infants' apparel, outerwear, swimwear, fragrance, jewelry, and other fashion accessories. The company markets its products under GUESS, GUESS?, GUESS U.S.A., GUESS Jeans, GUESS? and Triangle Design, MARCIANO, Question Mark and Triangle Design, a stylized G and a stylized M, GUESS Kids, Baby GUESS, YES, G by GUESS, GUESS by MARCIANO, and Gc brand names. It sells its products through direct-to-consumer, wholesale, and licensing distribution channels. As of August 4, 2018, the company directly operated 1,061 retail stores in the Americas, Europe, and Asia. Its licensees and distributors operated an additional 601 retail stores worldwide. The company also offers its products through its retail Websites. Guess?, Inc. was founded in 1981 and is headquartered in Los Angeles, California.

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