Weyco Group (NASDAQ:WEYS) and Jerash Holdings (US) (NASDAQ:JRSH) Critical Comparison

Jerash Holdings (US) (NASDAQ:JRSH) and Weyco Group (NASDAQ:WEYS) are both small-cap consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their risk, institutional ownership, earnings, dividends, valuation, analyst recommendations and profitability.

Profitability

This table compares Jerash Holdings (US) and Weyco Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Jerash Holdings (US)	2.77%	7.61%	5.69%
Weyco Group	12.39%	14.04%	11.28%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Jerash Holdings (US) and Weyco Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Jerash Holdings (US)	0	0	2	0	3.00
Weyco Group	0	0	1	0	3.00

Jerash Holdings (US) presently has a consensus target price of $6.00, suggesting a potential upside of 9.13%. Given Jerash Holdings (US)’s higher probable upside, research analysts plainly believe Jerash Holdings (US) is more favorable than Weyco Group.

Dividends

Jerash Holdings (US) pays an annual dividend of $0.20 per share and has a dividend yield of 3.6%. Weyco Group pays an annual dividend of $1.12 per share and has a dividend yield of 2.6%. Jerash Holdings (US) pays out 52.6% of its earnings in the form of a dividend. Weyco Group pays out 30.9% 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.

Volatility and Risk

Jerash Holdings (US) has a beta of 1.03, suggesting that its stock price is 3% more volatile than the S&P 500. Comparatively, Weyco Group has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500.

Valuation & Earnings

This table compares Jerash Holdings (US) and Weyco Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Jerash Holdings (US)	$166.26 million	0.42	$3.54 million	$0.38	14.47
Weyco Group	$276.17 million	1.52	$23.08 million	$3.63	12.07

Weyco Group has higher revenue and earnings than Jerash Holdings (US). Weyco Group is trading at a lower price-to-earnings ratio than Jerash Holdings (US), indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

3.4% of Jerash Holdings (US) shares are held by institutional investors. Comparatively, 23.6% of Weyco Group shares are held by institutional investors. 41.0% of Jerash Holdings (US) shares are held by insiders. Comparatively, 36.4% of Weyco Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Weyco Group beats Jerash Holdings (US) on 10 of the 16 factors compared between the two stocks.

About Jerash Holdings (US)

Jerash Holdings (US), Inc., through its subsidiaries, manufactures and exports customized and ready-made sport and outerwear. The company offers t-shirts; jackets and pullover; pants and shorts; crew neck, polo shirts, and tank tops made from knitted fabric, as well as personal protective equipment. It serves various brand-name retailers in the United States, Hong Kong, Jordan, and internationally. The company was incorporated in 2016 and is headquartered in Fairfield, New Jersey.

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.