Financial Analysis: Weyco Group (NASDAQ:WEYS) vs. Xtep International (OTCMKTS:XTEPY)

Weyco Group (NASDAQ:WEYS) and Xtep International (OTCMKTS:XTEPY) 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 dividends, institutional ownership, valuation, risk, analyst recommendations, earnings and profitability.

Insider & Institutional Ownership

23.6% of Weyco Group shares are held by institutional investors. 36.4% of Weyco Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Volatility & Risk

Weyco Group has a beta of 0.89, indicating that its share price is 11% less volatile than the S&P 500. Comparatively, Xtep International has a beta of 0.65, indicating that its share price is 35% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for Weyco Group and Xtep International, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Weyco Group	0	0	1	0	3.00
Xtep International	0	1	0	0	2.00

Valuation & Earnings

This table compares Weyco Group and Xtep International”s gross 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	1.21	$23.08 million	$2.41	14.58
Xtep International	$1.97 billion	0.83	$190.79 million	N/A	N/A

Xtep International has higher revenue and earnings than Weyco Group.

Profitability

This table compares Weyco Group and Xtep International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Weyco Group	8.36%	9.35%	7.54%
Xtep International	N/A	N/A	N/A

Dividends

Weyco Group pays an annual dividend of $1.08 per share and has a dividend yield of 3.1%. Xtep International pays an annual dividend of $4.48 per share and has a dividend yield of 7.7%. Weyco Group pays out 44.8% of its earnings in the form of a dividend. Weyco Group has raised its dividend for 3 consecutive years.

Summary

Weyco Group beats Xtep International on 10 of the 14 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 Xtep International

Xtep International Holdings Limited engages in the design, development, manufacture, sale, and marketing and brand management of sports footwear, apparel, and accessories. The company sells its products primarily under the XTEP brand, as well as Palladium, K-Swiss, Saucony, and Merrell brand names. It is also involved in the trading of sportswear products. As of March 18, 2021, the company managed an extensive distribution network with exclusive distributors that operated approximately 6,000 stores covering 31 provinces, autonomous regions, and municipalities in the People's Republic of China and internationally. It also offers its products online. The company was founded in 1999 and is headquartered in Xiamen, the People's Republic of China. Xtep International Holdings Limited is a subsidiary of Group Success Investments Limited.