Wolverine World Wide (NYSE:WWW – Get Free Report) and Jerash Holdings (US) (NASDAQ:JRSH – Get Free Report) 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 earnings, profitability, analyst recommendations, valuation, institutional ownership, risk and dividends.
Volatility and Risk
Wolverine World Wide has a beta of 1.73, indicating that its stock price is 73% more volatile than the S&P 500. Comparatively, Jerash Holdings (US) has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500.
Insider and Institutional Ownership
90.2% of Wolverine World Wide shares are owned by institutional investors. Comparatively, 3.4% of Jerash Holdings (US) shares are owned by institutional investors. 1.5% of Wolverine World Wide shares are owned by insiders. Comparatively, 42.7% of Jerash Holdings (US) shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Wolverine World Wide | $1.87 billion | 0.86 | $95.80 million | $1.24 | 15.94 |
| Jerash Holdings (US) | $166.26 million | 0.36 | $3.54 million | $0.28 | 16.79 |
Wolverine World Wide has higher revenue and earnings than Jerash Holdings (US). Wolverine World Wide 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.
Dividends
Wolverine World Wide pays an annual dividend of $0.40 per share and has a dividend yield of 2.0%. Jerash Holdings (US) pays an annual dividend of $0.20 per share and has a dividend yield of 4.3%. Wolverine World Wide pays out 32.3% of its earnings in the form of a dividend. Jerash Holdings (US) pays out 71.4% 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.
Profitability
This table compares Wolverine World Wide and Jerash Holdings (US)’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Wolverine World Wide | 5.41% | 29.37% | 6.86% |
| Jerash Holdings (US) | 2.13% | 5.57% | 4.18% |
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for Wolverine World Wide and Jerash Holdings (US), as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Wolverine World Wide | 0 | 5 | 5 | 1 | 2.64 |
| Jerash Holdings (US) | 0 | 0 | 2 | 0 | 3.00 |
Wolverine World Wide currently has a consensus target price of $21.75, indicating a potential upside of 10.03%. Jerash Holdings (US) has a consensus target price of $5.00, indicating a potential upside of 6.38%. Given Wolverine World Wide’s higher probable upside, analysts plainly believe Wolverine World Wide is more favorable than Jerash Holdings (US).
Summary
Wolverine World Wide beats Jerash Holdings (US) on 13 of the 17 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 and Work 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, Keds, 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 e-commerce sites. Wolverine World Wide, Inc. was founded in 1883 and is headquartered in Rockford, Michigan.
About Jerash Holdings (US)
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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.
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