Financial Survey: Weyco Group (WEYS) versus Talon International (TALN)

Weyco Group (NASDAQ: WEYS) and Talon International (OTCMKTS:TALN) are both small-cap consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, dividends, profitability, risk, earnings, analyst recommendations and institutional ownership.

Insider & Institutional Ownership

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30.8% of Weyco Group shares are owned by institutional investors. Comparatively, 0.0% of Talon International shares are owned by institutional investors. 42.8% of Weyco Group shares are owned by insiders. Comparatively, 20.3% of Talon International 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 Recommendations

This is a breakdown of current recommendations and price targets for Weyco Group and Talon International, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Weyco Group 0 1 0 0 2.00
Talon International 0 0 0 0 N/A

Weyco Group currently has a consensus target price of $26.00, indicating a potential downside of 24.81%. Given Weyco Group’s higher probable upside, analysts clearly believe Weyco Group is more favorable than Talon International.

Profitability

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

Net Margins Return on Equity Return on Assets
Weyco Group 5.81% 7.33% 5.90%
Talon International 1.10% 6.37% 2.37%

Valuation & Earnings

This table compares Weyco Group and Talon International’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Weyco Group $283.75 million 1.25 $16.49 million N/A N/A
Talon International $48.26 million 0.14 $990,000.00 N/A N/A

Weyco Group has higher revenue and earnings than Talon International.

Risk & Volatility

Weyco Group has a beta of 0.6, suggesting that its stock price is 40% less volatile than the S&P 500. Comparatively, Talon International has a beta of 2.38, suggesting that its stock price is 138% more volatile than the S&P 500.

Dividends

Weyco Group pays an annual dividend of $0.88 per share and has a dividend yield of 2.5%. Talon International does not pay a dividend.

Summary

Weyco Group beats Talon International on 11 of the 12 factors compared between the two stocks.

Weyco Group Company Profile

Weyco Group, Inc., together with its subsidiaries, designs and distributes footwear. The company operates through two segments, North American Wholesale and North American Retail. It engages in the design and marketing footwear for men, women, and children under the Florsheim, Nunn Bush, Stacy Adams, BOGS, Rafters, and Umi brand names. The company offers mid-priced leather dress shoes and casual footwear of man-made materials or leather; and outdoor boots, shoes, and sandals. It is involved in the wholesale of its products to footwear, department, and specialty stores primarily in the United States and Canada. As of December 31, 2017, the company had 10 brick and mortar retail stores in the United States; and an Internet business. It also has licensing agreements with third parties, who sell its branded apparel, accessories, and specialty footwear in the United States, as well as its footwear in Mexico and certain markets internationally. 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 founded in 1896 and is based in Milwaukee, Wisconsin.

Talon International Company Profile

Talon International, Inc. is a holding company, which specializes in the manufacturing and distribution of a range of apparel components and accessories, including custom zippers, apparel trim components and specialty stretch technology for interlinings. The Company distributes a range of apparel zipper, trim and interlining products to manufacturers of fashion apparel, specialty retailers and mass merchandisers. It operates its business under approximately two product groups, such as Talon Zipper and Talon Trim (which includes its Tekfit stretch technology products). It manufactures and distributes zippers under its Talon brand name to manufacturers for apparel brands and retailers. Talon Trim items include labels, buttons, leather patches, woven labels and others. Under its Tekfit brand, it develops and sells fabric stretch technology that utilizes processes to create stretchable comfort waistbands, shirt collars and inner pocketing panels.

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