Weyco Group (NASDAQ:WEYS – Get Free Report) and Birkenstock (NYSE:BIRK – Get Free Report) are both consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, analyst recommendations and earnings.
Profitability
This table compares Weyco Group and Birkenstock’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Weyco Group | 9.20% | 10.34% | 8.35% |
| Birkenstock | 15.21% | 11.52% | 6.27% |
Analyst Recommendations
This is a breakdown of current ratings for Weyco Group and Birkenstock, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Weyco Group | 0 | 1 | 0 | 0 | 2.00 |
| Birkenstock | 0 | 1 | 14 | 1 | 3.00 |
Insider & Institutional Ownership
23.6% of Weyco Group shares are owned by institutional investors. Comparatively, 19.9% of Birkenstock shares are owned by institutional investors. 35.5% of Weyco Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Volatility and Risk
Weyco Group has a beta of 0.98, meaning that its stock price is 2% less volatile than the S&P 500. Comparatively, Birkenstock has a beta of 1.22, meaning that its stock price is 22% more volatile than the S&P 500.
Earnings & Valuation
This table compares Weyco Group and Birkenstock”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Weyco Group | $290.29 million | 0.95 | $30.32 million | $2.69 | 10.70 |
| Birkenstock | $1.96 billion | 4.17 | $207.85 million | $1.80 | 24.17 |
Birkenstock has higher revenue and earnings than Weyco Group. Weyco Group is trading at a lower price-to-earnings ratio than Birkenstock, indicating that it is currently the more affordable of the two stocks.
Summary
Birkenstock beats Weyco Group on 11 of the 15 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 Birkenstock
Birkenstock Holding plc manufactures and sells footwear products. It also offers sandals, shoes, closed-toe silhouettes, skincare products, and accessories. The company sells its products through e-commerce sites and a network of owned retail stores, as well as business-to-business channels. It operates in the United States, Brazil, Canada, Mexico, Europe, APMA, and internationally. Birkenstock Holding plc was founded in 1774 and is based in London, the United Kingdom. Birkenstock Holding plc is a subsidiary of BK LC Lux MidCo S.à r.l.
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