Critical Contrast: Talon International (TALN) versus Weyco Group (WEYS)

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

Analyst Recommendations

This is a breakdown of recent ratings for Talon International and Weyco Group, as provided by MarketBeat.com.

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



Weyco Group has a consensus target price of $26.00, indicating a potential downside of 26.93%. Given Weyco Group’s higher possible upside, analysts clearly believe Weyco Group is more favorable than Talon International.

Profitability

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

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

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.

Risk & Volatility

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

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Talon International $48.26 million 0.15 $990,000.00 N/A N/A
Weyco Group $283.75 million 1.28 $16.49 million N/A N/A

Weyco Group has higher revenue and earnings than Talon International.

Insider & Institutional Ownership

0.0% of Talon International shares are owned by institutional investors. Comparatively, 30.8% of Weyco Group shares are owned by institutional investors. 20.3% of Talon International shares are owned by insiders. Comparatively, 42.8% of Weyco Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

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

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.

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.

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