Head-To-Head Survey: Weyco Group (NASDAQ:WEYS) versus Under Armour (NYSE:UA)

Under Armour (NYSE:UA) and Weyco Group (NASDAQ:WEYS) are both small-cap consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, risk, earnings, dividends and valuation.

Volatility and Risk

Under Armour has a beta of 1.53, indicating that its share price is 53% more volatile than the S&P 500. Comparatively, Weyco Group has a beta of 0.89, indicating that its share price is 11% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Under Armour and Weyco Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Under Armour	2	1	0	0	1.33
Weyco Group	0	0	1	0	3.00

Under Armour presently has a consensus target price of $5.50, indicating a potential upside of 18.66%. Given Under Armour’s higher possible upside, equities analysts clearly believe Under Armour is more favorable than Weyco Group.

Insider and Institutional Ownership

36.3% of Under Armour shares are owned by institutional investors. Comparatively, 23.6% of Weyco Group shares are owned by institutional investors. 15.6% of Under Armour shares are owned by insiders. Comparatively, 36.4% of Weyco Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Under Armour and Weyco Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Under Armour	-9.99%	4.04%	1.37%
Weyco Group	12.39%	14.04%	11.28%

Earnings & Valuation

This table compares Under Armour and Weyco Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Under Armour	$4.97 billion	0.40	-$495.64 million	($1.15)	-4.03
Weyco Group	$276.17 million	1.80	$23.08 million	$3.63	14.35

Weyco Group has lower revenue, but higher earnings than Under Armour. Under Armour is trading at a lower price-to-earnings ratio than Weyco Group, indicating that it is currently the more affordable of the two stocks.

Summary

Weyco Group beats Under Armour on 10 of the 14 factors compared between the two stocks.

About Under Armour

Under Armour, Inc., together with its subsidiaries, develops, markets, and distributes performance apparel, footwear, and accessories for men, women, and youth. The company provides its apparel in compression, fitted, and loose fit types. It also offers footwear products for running, training, basketball, cleated sports, recovery, and outdoor applications. In addition, the company provides accessories, which include gloves, bags, headwear, and sports masks; and digital subscription, advertising, and other digital business services. It primarily offers its products under the UNDER ARMOUR, HEATGEAR, COLDGEAR, HOVR, UA, PROTECT THIS HOUSE, I WILL, UA Logo, ARMOUR FLEECE, and ARMOUR BRA brands. The company sells its products through wholesale channels, including national and regional sporting goods chains, independent and specialty retailers, department store chains, mono-branded Under Armour retail stores, institutional athletic departments, and leagues and teams, as well as independent distributors; and directly to consumers through a network of 439 Brand and Factory House stores, as well as through e-commerce websites. It operates in the United States, Canada, Europe, the Middle East, Africa, the Asia-Pacific, and Latin America. Under Armour, Inc. was incorporated in 1996 and is headquartered in Baltimore, Maryland.

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.