Reviewing Wolverine World Wide (WWW) and The Competition

Wolverine World Wide (NYSE:WWW) is one of 117 public companies in the “Textiles, Apparel & Luxury Goods” industry, but how does it compare to its peers? We will compare Wolverine World Wide to related companies based on the strength of its profitability, valuation, analyst recommendations, dividends, earnings, institutional ownership and risk.

Analyst Recommendations

This is a summary of recent ratings and price targets for Wolverine World Wide and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wolverine World Wide	0	6	5	0	2.45
Wolverine World Wide Competitors	1650	7637	10054	362	2.46

Wolverine World Wide presently has a consensus target price of $23.11, indicating a potential upside of 6.71%. As a group, “Textiles, Apparel & Luxury Goods” companies have a potential upside of 13.47%. Given Wolverine World Wide’s peers stronger consensus rating and higher probable upside, analysts plainly believe Wolverine World Wide has less favorable growth aspects than its peers.

Valuation & Earnings

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	$1.87 billion	$95.80 million	16.79
Wolverine World Wide Competitors	$5.64 billion	$471.75 million	24.66

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

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	5.55%	28.50%	7.23%
Wolverine World Wide Competitors	-3.45%	12.79%	2.71%

Dividends

Wolverine World Wide pays an annual dividend of $0.40 per share and has a dividend yield of 1.8%. Wolverine World Wide pays out 31.0% of its earnings in the form of a dividend. As a group, “Textiles, Apparel & Luxury Goods” companies pay a dividend yield of 3.5% and pay out 23.0% of their earnings in the form of a dividend. Wolverine World Wide lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Institutional & Insider Ownership

90.2% of Wolverine World Wide shares are held by institutional investors. Comparatively, 54.4% of shares of all “Textiles, Apparel & Luxury Goods” companies are held by institutional investors. 1.5% of Wolverine World Wide shares are held by insiders. Comparatively, 15.1% of shares of all “Textiles, Apparel & Luxury Goods” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

Wolverine World Wide has a beta of 1.67, meaning that its share price is 67% more volatile than the S&P 500. Comparatively, Wolverine World Wide’s peers have a beta of 0.92, meaning that their average share price is 8% less volatile than the S&P 500.

Summary

Wolverine World Wide peers beat Wolverine World Wide on 10 of the 15 factors compared.

Wolverine World Wide Company Profile

Wolverine World Wide, Inc. designs, manufactures, sources, markets, licenses, and distributes footwear, apparel, and accessories in the United States, Europe, the Middle East, Africa, the Asia Pacific, Canada and Latin America. It operates through Active Group and Work Group segments. The company offers casual footwear and apparel; performance outdoor and athletic footwear and apparel; kids' footwear; industrial work boots and apparel; and uniform shoes and boots. The company sources and markets a range of footwear and apparel styles, including shoes, boots and sandals under the Bates, Cat, Chaco, Harley-Davidson, Hush Puppies, Hytest, Merrell, Saucony, Sperry, Keds, Sweaty Betty, and Wolverine brands; and licenses under the Stride Rite brand. It also markets Merrell and Wolverine branded apparel and accessories, as well as licenses its brands for use on non-footwear products, including the Hush Puppies apparel, eyewear, watches, socks, handbags, and plush toys; and Wolverine branded eyewear and gloves. In addition, the company markets pigskin leather under the Wolverine Leather division; sourcing division provides consulting services related to product development, production control, quality assurance, materials procurement, compliance, and other service; and multi-brand direct-to-consumer division includes retail stores that sell footwear and apparel of its brand portfolio. Further, it sells its products to department stores, national chains, catalog and specialty retailers, independent retailers, uniform outlets, and mass merchant and government customers through retail stores, third-party licensees and distributors, and joint ventures; and operates brick and mortar retails stores, and e-commerce sites. Additionally, the company operates through a network of retail stores and e-commerce sites. Wolverine World Wide, Inc. was founded in 1883 and is headquartered in Rockford, Michigan.