G-III Apparel Group (NASDAQ:GIII) and Weyco Group (NASDAQ:WEYS) Head to Head Analysis

Weyco Group (NASDAQ:WEYS) and G-III Apparel Group (NASDAQ:GIII) are both small-cap consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, dividends, profitability, risk and valuation.

Risk and Volatility

Weyco Group has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500. Comparatively, G-III Apparel Group has a beta of 1.28, suggesting that its stock price is 28% more volatile than the S&P 500.

Profitability

This table compares Weyco Group and G-III Apparel Group’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%
G-III Apparel Group	4.34%	5.59%	3.72%

Valuation and Earnings

This table compares Weyco Group and G-III Apparel Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Weyco Group	$276.17 million	1.55	$23.08 million	$3.63	12.35
G-III Apparel Group	$2.96 billion	0.48	$67.35 million	$2.83	11.94

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

Dividends

Weyco Group pays an annual dividend of $1.12 per share and has a dividend yield of 2.5%. G-III Apparel Group pays an annual dividend of $0.40 per share and has a dividend yield of 1.2%. Weyco Group pays out 30.9% of its earnings in the form of a dividend. G-III Apparel Group pays out 14.1% 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. Weyco Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider and Institutional Ownership

23.6% of Weyco Group shares are owned by institutional investors. Comparatively, 92.1% of G-III Apparel Group shares are owned by institutional investors. 36.4% of Weyco Group shares are owned by insiders. Comparatively, 15.0% of G-III Apparel Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and price targets for Weyco Group and G-III Apparel Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Weyco Group	0	0	1	0	3.00
G-III Apparel Group	1	3	3	0	2.29

G-III Apparel Group has a consensus target price of $33.00, indicating a potential downside of 2.37%. Given G-III Apparel Group’s higher possible upside, analysts clearly believe G-III Apparel Group is more favorable than Weyco Group.

Summary

Weyco Group beats G-III Apparel Group on 10 of the 17 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 G-III Apparel Group

G-III Apparel Group, Ltd. designs, sources, and markets women's and men's apparel in the United States and internationally. The company operates through two segments, Wholesale Operations and Retail Operations. Its products include outerwear, dresses, sportswear, swimwear, women's suits, and women's performance wear; and women's handbags, footwear, small leather goods, cold weather accessories, and luggage. The company markets apparel and other products under the proprietary brands, including DKNY, Donna Karan, Karl Lagerfeld, Karl Lagerfeld Paris, Vilebrequin, G.H. Bass, Eliza J, Jessica Howard, Andrew Marc, Marc New York, Wilsons Leather, Sonia Rykiel, and G-III Sports by Carl Banks; and licensed brands, such as Calvin Klein, Tommy Hilfiger, Levi's, Guess?, Kenneth Cole, Cole Haan, Vince Camuto, Margaritaville, and Dockers. It has licenses with the National Football League, National Basketball Association, Major League Baseball, and National Hockey League, as well as approximately 150 U.S. colleges and universities. The company offers its products to department, specialty, and mass merchant retail stores. It also sells its products online. G-III Apparel Group, Ltd. was founded in 1956 and is based in New York, New York.