True Religion Apparel (NASDAQ: TRLG) and Vera Bradley (NASDAQ:VRA) are both consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitabiliy, dividends and valuation.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for True Religion Apparel and Vera Bradley, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
True Religion Apparel 0 0 0 0 N/A
Vera Bradley 0 5 1 0 2.17

Vera Bradley has a consensus price target of $11.80, suggesting a potential upside of 36.89%. Given Vera Bradley’s higher probable upside, analysts clearly believe Vera Bradley is more favorable than True Religion Apparel.

Valuation and Earnings

This table compares True Religion Apparel and Vera Bradley’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
True Religion Apparel N/A N/A N/A N/A N/A
Vera Bradley $485.94 million 0.64 $60.44 million $0.85 10.14

Vera Bradley has higher revenue and earnings than True Religion Apparel.

Insider and Institutional Ownership

55.6% of Vera Bradley shares are held by institutional investors. 40.9% of Vera Bradley shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares True Religion Apparel and Vera Bradley’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
True Religion Apparel N/A N/A N/A
Vera Bradley 6.34% 11.15% 8.61%

Summary

Vera Bradley beats True Religion Apparel on 8 of the 8 factors compared between the two stocks.

True Religion Apparel Company Profile

True Religion Apparel, Inc. (True Religion), designs, markets, sells and distributes fashion apparel under the brand name True Religion Brand Jeans to consumers in six continents, including North America, Europe, Asia, Australia, Africa and South America. The Company operates in four segments: U.S. Consumer Direct, International, U.S. Wholesale and Core Services. Its products can be categorized as denim jeans and its non-denim merchandise, which the Company refer to as sportswear. The sportswear category includes knit and non-denim, and most come in ‘tops’ and ‘bottoms’. Knit styles include hoodies, t-shirts and sweats, and non-denim fabrics include corduroy and twill. Tops range from shirts to jackets, and bottoms encompass pants, shorts and skirts. In July 2013, True Religion Apparel Inc announced the completion of the acquisition of the Company by TowerBrook Capital Partners L.P.

Vera Bradley Company Profile

Vera Bradley, Inc. (Vera Bradley) is a designer of women’s handbags, accessories, luggage and travel items, eyewear, and stationery and gifts. The Company’s segments include Direct and Indirect. The Company offers various products, including bags, travel, home and accessories. Its accessories include fashion accessories, such as wallets, eyeglass cases, jewelry, and scarves and various technology accessories. The Direct business consists of sales of Vera Bradley products through factory outlet stores in the United States, verabradley.com, direct-to-consumer eBay sales and its annual outlet sale in Fort Wayne, Indiana. As of January 28, 2017, the Indirect business consisted of sales of Vera Bradley products to approximately 2,600 specialty retail locations, substantially all of which were located in the United States, as well as department stores, national accounts, third party e-commerce sites, the Company’s wholesale customer in Japan, and third-party inventory liquidators.

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