Salvatore Ferragamo (OTCMKTS:SFRGF) and Wolverine World Wide (NYSE:WWW) Head-To-Head Analysis

Wolverine World Wide (NYSE:WWW) and Salvatore Ferragamo (OTCMKTS:SFRGF) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, institutional ownership, risk, dividends, analyst recommendations and profitability.

Valuation & Earnings

This table compares Wolverine World Wide and Salvatore Ferragamo”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wolverine World Wide	$1.87 billion	0.89	$95.80 million	$1.29	15.80
Salvatore Ferragamo	N/A	N/A	N/A	$0.87	12.24

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

Institutional and Insider Ownership

90.2% of Wolverine World Wide shares are owned by institutional investors. Comparatively, 8.8% of Salvatore Ferragamo shares are owned by institutional investors. 1.5% of Wolverine World Wide shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations for Wolverine World Wide and Salvatore Ferragamo, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wolverine World Wide	0	6	5	0	2.45
Salvatore Ferragamo	0	0	1	0	3.00

Wolverine World Wide presently has a consensus target price of $23.11, indicating a potential upside of 13.40%. Given Wolverine World Wide’s higher probable upside, equities research analysts plainly believe Wolverine World Wide is more favorable than Salvatore Ferragamo.

Dividends

Wolverine World Wide pays an annual dividend of $0.40 per share and has a dividend yield of 2.0%. Salvatore Ferragamo pays an annual dividend of $0.40 per share and has a dividend yield of 3.7%. Wolverine World Wide pays out 31.0% of its earnings in the form of a dividend. Salvatore Ferragamo pays out 45.8% 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 Salvatore Ferragamo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Wolverine World Wide	5.55%	28.50%	7.23%
Salvatore Ferragamo	N/A	N/A	N/A

Summary

Wolverine World Wide beats Salvatore Ferragamo on 11 of the 13 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 Salvatore Ferragamo

Salvatore Ferragamo S.p.A., through its subsidiaries, creates, produces, and sells luxury goods for men and women in Italy, rest of Europe, North America, Japan, the Asia Pacific, and Central and South America. It offers men's and women's footwear; leather goods, such as handbags, suitcases, belts, wallets, and other men's and women's leather accessories; and knitwear, clothes for formal occasions, sportswear, and leisure wear, as well as outerwear, such as husky jackets, ponchos, and leather garments. The company also provides silk accessories, including ties, foulards, scarves, etc.; home accessories comprising plaid throws, cushions, and beach towels; costume jewelry; and other accessories consisting of shawls and gloves. In addition, it develops and distributes perfumes and fragrances. Further, the company offers men's and women's sunglasses and prescription glasses; jewelry products; and watches. Additionally, it is also involved in the real estate management business. The company was formerly known as Salvatore Ferragamo Italia S.p.A. and changed its name to Salvatore Ferragamo S.p.A. in April 2011. The company was founded in 1927 and is headquartered in Florence, Italy. Salvatore Ferragamo S.p.A. is a subsidiary of Ferragamo Finanziaria S.p.A.