Wolverine World Wide (NYSE:WWW) vs. Superior Group of Companies (NASDAQ:SGC) Head to Head Review

Wolverine World Wide (NYSE:WWW) and Superior Group of Companies (NASDAQ:SGC) are both small-cap consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, dividends, earnings, profitability and risk.

Analyst Ratings

This is a breakdown of recent recommendations for Wolverine World Wide and Superior Group of Companies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wolverine World Wide	0	6	5	0	2.45
Superior Group of Companies	0	1	1	0	2.50

Wolverine World Wide presently has a consensus price target of $23.11, suggesting a potential upside of 19.64%. Superior Group of Companies has a consensus price target of $18.00, suggesting a potential upside of 44.93%. Given Superior Group of Companies’ stronger consensus rating and higher probable upside, analysts clearly believe Superior Group of Companies is more favorable than Wolverine World Wide.

Dividends

Wolverine World Wide pays an annual dividend of $0.40 per share and has a dividend yield of 2.1%. Superior Group of Companies pays an annual dividend of $0.56 per share and has a dividend yield of 4.5%. Wolverine World Wide pays out 31.0% of its earnings in the form of a dividend. Superior Group of Companies pays out 101.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Valuation & Earnings

This table compares Wolverine World Wide and Superior Group of Companies”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	0.85	$95.80 million	$1.29	14.97
Superior Group of Companies	$566.18 million	0.35	$7.00 million	$0.55	22.58

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

Profitability

This table compares Wolverine World Wide and Superior Group of Companies’ 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%
Superior Group of Companies	1.44%	5.29%	2.47%

Volatility and Risk

Wolverine World Wide has a beta of 1.72, indicating that its share price is 72% more volatile than the S&P 500. Comparatively, Superior Group of Companies has a beta of 1.45, indicating that its share price is 45% more volatile than the S&P 500.

Insider and Institutional Ownership

90.2% of Wolverine World Wide shares are owned by institutional investors. Comparatively, 33.8% of Superior Group of Companies shares are owned by institutional investors. 1.5% of Wolverine World Wide shares are owned by company insiders. Comparatively, 29.1% of Superior Group of Companies shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Wolverine World Wide beats Superior Group of Companies on 11 of the 16 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 Superior Group of Companies

Superior Group of Companies, Inc. manufactures and sells apparel and accessories in the United States and internationally. It operates through three segments: Branded Products, Healthcare Apparel, and Contact Centers. The Branded Products segment produces and sells customized merchandising solutions, promotional products, and branded uniform to chain retailer, food service, entertainment, technology, transportation, and other industries under BAMKO and HPI brands. The Healthcare Apparel segment manufactures and sells healthcare apparel, such as scrubs, lab coats, protective apparel, and patient gowns under the Fashion Seal Healthcare, CID Resources and Wink, and Carhartt brand names. This segment sells healthcare service apparel to healthcare laundries, dealers, distributors, and physical and e-commerce retailers. The Contact Centers segment offers outsourced, nearshore business process outsourcing, and contact and call-center support services. The company was formerly known as Superior Uniform Group, Inc. and changed its name to Superior Group of Companies, Inc. in May 2018. Superior Group of Companies, Inc. was founded in 1920 and is headquartered in St. Petersburg, Florida.