Big Lots (NYSE: BIG) and Vipshop Holdings Limited (NYSE:VIPS) are both mid-cap retail/wholesale companies, but which is the better business? We will compare the two companies based on the strength of their dividends, institutional ownership, profitabiliy, earnings, analyst recommendations, valuation and risk.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Big Lots and Vipshop Holdings Limited, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Big Lots 0 5 6 1 2.67
Vipshop Holdings Limited 1 2 8 0 2.64

Big Lots presently has a consensus price target of $57.50, suggesting a potential upside of 20.07%. Vipshop Holdings Limited has a consensus price target of $15.63, suggesting a potential upside of 38.96%. Given Vipshop Holdings Limited’s higher probable upside, analysts clearly believe Vipshop Holdings Limited is more favorable than Big Lots.

Valuation & Earnings

This table compares Big Lots and Vipshop Holdings Limited’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Big Lots $5.18 billion 0.41 $368.08 million $3.67 13.05
Vipshop Holdings Limited $8.90 billion 0.74 $574.92 million $0.51 22.06

Vipshop Holdings Limited has higher revenue and earnings than Big Lots. Big Lots is trading at a lower price-to-earnings ratio than Vipshop Holdings Limited, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Big Lots and Vipshop Holdings Limited’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Big Lots 3.20% 29.88% 10.71%
Vipshop Holdings Limited 3.50% 44.90% 10.78%

Risk and Volatility

Big Lots has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500. Comparatively, Vipshop Holdings Limited has a beta of 1.87, suggesting that its stock price is 87% more volatile than the S&P 500.

Institutional and Insider Ownership

68.5% of Vipshop Holdings Limited shares are held by institutional investors. 1.6% of Big Lots shares are held by insiders. Comparatively, 29.5% of Vipshop Holdings Limited shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Dividends

Big Lots pays an annual dividend of $1.00 per share and has a dividend yield of 2.1%. Vipshop Holdings Limited does not pay a dividend. Big Lots pays out 27.2% of its earnings in the form of a dividend. Vipshop Holdings Limited has raised its dividend for 2 consecutive years.

Summary

Vipshop Holdings Limited beats Big Lots on 14 of the 18 factors compared between the two stocks.

Big Lots Company Profile

Big Lots, Inc. is a non-traditional, discount retailer operating in the United States. As of January 28, 2017, the Company operated a total of 1,432 stores. The Company operates through the discount retailing segment. As of January 28, 2017, the Company’s stores are located at various states of the United States, such as Alabama, Arizona, California, Colorado, Florida, Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, Maine, Michigan, Montana, Nevada, Nebraska, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, South Carolina, Texas, Utah and Washington. The Company’s merchandise categories include Furniture, Seasonal, Soft Home, Food, Consumables, Hard Home, and Electronics, Toys, & Accessories.

Vipshop Holdings Limited Company Profile

Vipshop Holdings Limited is a holding company. The Company is an online discount retailer for brands in China. The Company offers branded products to consumers in China through flash sales mainly on its vip.com Website. The Company’s segment is sales, product distribution and offering of goods on its online platforms. The Company conducts its business through its subsidiaries and consolidated affiliated entities in China. Through its flash sales model, the Company sells limited quantities of discounted branded products online for limited periods of time. The Company offers diversified product offerings from over 17,000 domestic and international brands, including apparel for women, men and children, fashion goods, cosmetics, home goods and other lifestyle products. The Company offers a range of products and services for consumers through lefeng.com, specializing in branded cosmetics, apparel, healthcare products, food and other consumer products.

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