Wolverine World Wide (NYSE:WWW) vs. Deckers Outdoor (NYSE:DECK) Critical Review

Wolverine World Wide (NYSE:WWWGet Free Report) and Deckers Outdoor (NYSE:DECKGet Free Report) are both consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, profitability, dividends, risk, analyst recommendations, earnings and institutional ownership.

Volatility & Risk

Wolverine World Wide has a beta of 1.72, meaning that its share price is 72% more volatile than the S&P 500. Comparatively, Deckers Outdoor has a beta of 1.15, meaning that its share price is 15% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Wolverine World Wide and Deckers Outdoor, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Wolverine World Wide 0 6 5 0 2.45
Deckers Outdoor 3 13 9 0 2.24

Wolverine World Wide currently has a consensus target price of $23.11, indicating a potential upside of 22.11%. Deckers Outdoor has a consensus target price of $114.80, indicating a potential upside of 46.30%. Given Deckers Outdoor’s higher probable upside, analysts plainly believe Deckers Outdoor is more favorable than Wolverine World Wide.

Institutional & Insider Ownership

90.2% of Wolverine World Wide shares are owned by institutional investors. Comparatively, 97.8% of Deckers Outdoor shares are owned by institutional investors. 1.5% of Wolverine World Wide shares are owned by insiders. Comparatively, 0.4% of Deckers Outdoor shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Wolverine World Wide and Deckers Outdoor”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Wolverine World Wide $1.95 billion 0.80 $95.80 million $1.29 14.67
Deckers Outdoor $5.47 billion 1.95 $1.02 billion $7.05 11.13

Deckers Outdoor has higher revenue and earnings than Wolverine World Wide. Deckers Outdoor 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.

Profitability

This table compares Wolverine World Wide and Deckers Outdoor’s 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%
Deckers Outdoor 18.54% 41.51% 26.55%

Summary

Deckers Outdoor beats Wolverine World Wide on 10 of the 14 factors compared between the two stocks.

About Wolverine World Wide

(Get Free Report)

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.

About Deckers Outdoor

(Get Free Report)

Deckers Outdoor Corporation, together with its subsidiaries, designs, markets, and distributes footwear, apparel, and accessories for casual lifestyle use and high-performance activities in the United States and internationally. The company offers premium footwear, apparel, and accessories under the UGG brand name; footwear, apparel, and accessories for ultra-runners and athletes under the HOKA brand name; and sandals, shoes, and boots under the Teva brand name. It also provides relaxed casual shoes and sandals under the Sanuk brand name; casual footwear fashion line under the Koolaburra brand name; and footwear under the AHNU brand name. The company sells its products through domestic and international retailers; international distributors; and directly to its consumers through its direct-to-consumer business, which includes e-commerce websites and retail stores. Deckers Outdoor Corporation was founded in 1973 and is headquartered in Goleta, California.

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