Contrasting Wacoal (OTCMKTS:WACLY) and Oxford Industries (NYSE:OXM)

Wacoal (OTCMKTS:WACLY) and Oxford Industries (NYSE:OXM) are both small-cap consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, dividends, valuation, earnings and profitability.

Risk & Volatility

Wacoal has a beta of -0.08, meaning that its share price is 108% less volatile than the S&P 500. Comparatively, Oxford Industries has a beta of 1.36, meaning that its share price is 36% more volatile than the S&P 500.

Earnings and Valuation

This table compares Wacoal and Oxford Industries”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wacoal	$1.14 billion	1.51	$46.13 million	$4.29	38.81
Oxford Industries	$1.52 billion	0.41	$92.97 million	$5.15	8.12

Oxford Industries has higher revenue and earnings than Wacoal. Oxford Industries is trading at a lower price-to-earnings ratio than Wacoal, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Wacoal and Oxford Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Wacoal	4.06%	3.39%	2.48%
Oxford Industries	5.35%	14.97%	7.29%

Insider and Institutional Ownership

91.2% of Oxford Industries shares are owned by institutional investors. 0.8% of Wacoal shares are owned by company insiders. Comparatively, 6.0% of Oxford Industries shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Dividends

Wacoal pays an annual dividend of $3.14 per share and has a dividend yield of 1.9%. Oxford Industries pays an annual dividend of $2.76 per share and has a dividend yield of 6.6%. Wacoal pays out 73.2% of its earnings in the form of a dividend. Oxford Industries pays out 53.6% 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. Oxford Industries has increased its dividend for 5 consecutive years. Oxford Industries is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Wacoal and Oxford Industries, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wacoal	0	0	0	0	0.00
Oxford Industries	1	4	0	0	1.80

Oxford Industries has a consensus price target of $55.80, indicating a potential upside of 33.46%. Given Oxford Industries’ stronger consensus rating and higher probable upside, analysts clearly believe Oxford Industries is more favorable than Wacoal.

Summary

Oxford Industries beats Wacoal on 14 of the 16 factors compared between the two stocks.

About Wacoal

Wacoal Holdings Corp. engages in the manufacturing, wholesale, and retail sale of intimate apparel, outerwear, sportswear, and other textile products and accessories in Japan, Asia, Oceania, the United States, and Europe. The company operates through Wacoal Business (Domestic), Wacoal Business (Overseas), Peach John Business, and Other Businesses segments. It offers intimate apparel mainly women’s foundation wear, lingerie, nightwear and children’s underwear; and outerwear, sportswear, and other textile products and accessories. The company also engages in the restaurant, cultural and service-related businesses; and manufacture and sale of mannequins and fixtures, interior design work, and other textile-related businesses. It offers products through department stores, general merchandisers, and other general retailers in Japan, as well as directly managed retail stores, E-commerce websites, and distributors in Japan and internationally. Wacoal Holdings Corp. was founded in 1946 and is headquartered in Kyoto, Japan.

About Oxford Industries

Oxford Industries, Inc., an apparel company, designs, sources, markets, and distributes products of lifestyle and other brands worldwide. The company offers men's and women's sportswear and related products under the Tommy Bahama brand; and women's and girl's dresses and sportswear, scarves, bags, jewelry, and belts, as well as children's apparel, swim, footwear, and licensed products under the Lilly Pulitzer brand. In addition, the company licenses Tommy Bahama brand for various products, such as indoor and outdoor furniture, beach chairs, bedding and bath linens, fabrics, leather goods and gifts, headwear, hosiery, sleepwear, shampoo, toiletries, fragrances, cigar accessories, distilled spirits, and other products; and Lilly Pulitzer for stationery and gift products, home furnishing products, and eyewear. The company distribute its products through southerntide.com, thebeaufortbonnetcompany.com, and duckhead.com; and specialty retailers. It offers products through its retail stores, department stores, specialty stores, multi-branded e-commerce retailers, off-price retailers, and other retailers, as well as e-commerce sites. The company operates brand-specific full-price retail stores; Tommy Bahama food and beverage locations; and Tommy Bahama outlet stores. Oxford Industries, Inc. was founded in 1942 and is headquartered in Atlanta, Georgia.