Actually, it does not. Schmuck is a foolish person.
"Schmuck", or "shmuck", in American English is a pejorative term meaning one who is stupid or foolish, or an obnoxious, contemptible or detestable person. The word came into the English language from Yiddish (שמאָק, shmok), where it has similar pejorative meanings, but where its original and literal meaning is penis.
Putz effectively means the same thing...
A schmuck is a prick...like Moe in the Three stooges.