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

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

Dividends

Weyco Group pays an annual dividend of $1.12 per share and has a dividend yield of 2.5%. Jerash Holdings (US) pays an annual dividend of $0.20 per share and has a dividend yield of 3.6%. Weyco Group pays out 30.9% of its earnings in the form of a dividend. Jerash Holdings (US) pays out 52.6% 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.

Institutional and Insider Ownership

23.6% of Weyco Group shares are owned by institutional investors. Comparatively, 3.4% of Jerash Holdings (US) shares are owned by institutional investors. 36.4% of Weyco Group shares are owned by company insiders. Comparatively, 41.0% of Jerash Holdings (US) shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

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

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

Jerash Holdings (US) has a consensus target price of $6.00, suggesting a potential upside of 8.50%. Given Jerash Holdings (US)’s higher possible upside, analysts plainly believe Jerash Holdings (US) is more favorable than Weyco Group.

Profitability

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

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

Risk and Volatility

Weyco Group has a beta of 0.89, suggesting that its share price is 11% less volatile than the S&P 500. Comparatively, Jerash Holdings (US) has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Weyco Group	$276.17 million	1.57	$23.08 million	$3.63	12.50
Jerash Holdings (US)	$166.26 million	0.42	$3.54 million	$0.38	14.55

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.

Summary

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

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.

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.