Reviewing Vipshop Holdings Limited (VIPS) and Burlington Stores (BURL)
Vipshop Holdings Limited (NYSE: VIPS) and Burlington Stores (NYSE:BURL) are both mid-cap computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, profitability, risk, earnings and dividends.
Institutional & Insider Ownership
68.1% of Vipshop Holdings Limited shares are held by institutional investors. 29.5% of Vipshop Holdings Limited shares are held by insiders. Comparatively, 2.6% of Burlington Stores 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.
This is a breakdown of recent ratings and recommmendations for Vipshop Holdings Limited and Burlington Stores, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Vipshop Holdings Limited||2||3||7||0||2.42|
Vipshop Holdings Limited currently has a consensus price target of $14.44, suggesting a potential upside of 46.45%. Burlington Stores has a consensus price target of $103.69, suggesting a potential upside of 22.29%. Given Vipshop Holdings Limited’s higher possible upside, analysts clearly believe Vipshop Holdings Limited is more favorable than Burlington Stores.
Volatility and Risk
Vipshop Holdings Limited has a beta of 1.9, indicating that its share price is 90% more volatile than the S&P 500. Comparatively, Burlington Stores has a beta of 0.51, indicating that its share price is 49% less volatile than the S&P 500.
Earnings & Valuation
This table compares Vipshop Holdings Limited and Burlington Stores’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Vipshop Holdings Limited||$9.66 billion||0.60||$596.18 million||$0.49||20.12|
|Burlington Stores||$5.65 billion||1.04||$572.65 million||$3.23||26.25|
Vipshop Holdings Limited has higher revenue and earnings than Burlington Stores. Vipshop Holdings Limited is trading at a lower price-to-earnings ratio than Burlington Stores, indicating that it is currently the more affordable of the two stocks.
This table compares Vipshop Holdings Limited and Burlington Stores’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Vipshop Holdings Limited||3.17%||42.46%||10.30%|
Vipshop Holdings Limited beats Burlington Stores on 8 of the 14 factors compared between the two stocks.
About Vipshop Holdings Limited
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.
About Burlington Stores
Burlington Stores, Inc. is a retailer of branded apparel. As of January 28, 2017, the Company operated 592 retail stores, inclusive of an Internet store, in 45 states and Puerto Rico. Its product categories include coats, women, men, juniors, girls, boys, shoes, handbags and accessories, beauty and fragrance, home and toys. The product categories for coats include women’s coats and jackets, men’s coats and jackets, juniors coats and jackets, girls coats and jackets, boy’s coats and jackets, baby girl coats and jackets, and baby boy coats and jackets. The product categories for women include active wear, bottoms, coats and jackets, dresses, tops, scrubs, suit and suit separates, sweaters, swimwear and cover-ups. It also includes accessories, beauty and fragrance, handbags, jewelry, shoes and watches. The product categories for men include accessories, active wear, casual button down shirts, dress shirts, men’s coats jackets, fleece, graphic tees, hoodies and sweatshirts, and jeans.
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