Wolverine World Wide (NYSE:WWW) vs. Yue Yuen Industrial (OTCMKTS:YUEIF) Critical Survey

Wolverine World Wide (NYSE:WWW) and Yue Yuen Industrial (OTCMKTS:YUEIF) are both consumer cyclical companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, profitability, risk and valuation.

Dividends

Wolverine World Wide pays an annual dividend of $0.40 per share and has a dividend yield of 4.9%. Yue Yuen Industrial pays an annual dividend of $0.10 per share and has a dividend yield of 8.2%. Wolverine World Wide pays out -11.2% of its earnings in the form of a dividend. Yue Yuen Industrial pays out 49.3% 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.

Analyst Ratings

This is a breakdown of current ratings and target prices for Wolverine World Wide and Yue Yuen Industrial, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wolverine World Wide	0	8	2	0	2.20
Yue Yuen Industrial	0	0	0	0	N/A

Wolverine World Wide currently has a consensus price target of $11.89, indicating a potential upside of 44.63%. Given Wolverine World Wide’s higher possible upside, equities research analysts plainly believe Wolverine World Wide is more favorable than Yue Yuen Industrial.

Valuation & Earnings

This table compares Wolverine World Wide and Yue Yuen Industrial’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wolverine World Wide	$2.54 billion	0.26	-$188.30 million	($3.58)	-2.30
Yue Yuen Industrial	N/A	N/A	N/A	$0.20	6.01

Yue Yuen Industrial has lower revenue, but higher earnings than Wolverine World Wide. Wolverine World Wide is trading at a lower price-to-earnings ratio than Yue Yuen Industrial, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

93.7% of Wolverine World Wide shares are held by institutional investors. Comparatively, 17.5% of Yue Yuen Industrial shares are held by institutional investors. 4.7% of Wolverine World Wide shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Wolverine World Wide and Yue Yuen Industrial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Wolverine World Wide	-10.99%	11.70%	1.93%
Yue Yuen Industrial	N/A	N/A	N/A

Summary

Wolverine World Wide beats Yue Yuen Industrial on 8 of the 12 factors compared between the two stocks.

About Wolverine World Wide

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, Work Group, Lifestyle 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, 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 consumer-direct e-commerce sites. Wolverine World Wide, Inc. was founded in 1883 and is headquartered in Rockford, Michigan.

About Yue Yuen Industrial

Yue Yuen Industrial (Holdings) Limited, an investment holding company, engages in manufacturing and sale of athletic, athleisure, casual, and outdoor footwear in the People's Republic of China, rest of Asia, the United States, Europe, and internationally. The company operates as an original design manufacturer/original equipment manufacturer for various international brand names, such as adidas, Asics, New Balance, Nike, Salomon, and Timberland. It also distributes sporting products; and operate sport service platform, which includes events, venues, media, broadcasting, shopping, activities, registration, ticketing, and other sports-related services online and offline for event sponsorship, promotions, sports center operations, and design services. In addition, the company provides commercial spaces to retailers and distributors; and trades in footwear. Yue Yuen Industrial (Holdings) Limited was founded in 1969 and is headquartered in Kwun Tong, Hong Kong.