Critical Review: V.F. Corporation (VFC) and Vince Holding Corp. (VNCE)
V.F. Corporation (NYSE: VFC) and Vince Holding Corp. (NYSE:VNCE) are both consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, dividends, analyst recommendations, earnings and profitability.
Valuation and Earnings
This table compares V.F. Corporation and Vince Holding Corp.’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|V.F. Corporation||$12.01 billion||2.05||$1.87 billion||$2.59||24.12|
|Vince Holding Corp.||$258.60 million||0.10||$1.97 million||($3.44)||-0.15|
V.F. Corporation has higher revenue and earnings than Vince Holding Corp.. Vince Holding Corp. is trading at a lower price-to-earnings ratio than V.F. Corporation, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
89.1% of V.F. Corporation shares are held by institutional investors. Comparatively, 14.3% of Vince Holding Corp. shares are held by institutional investors. 1.6% of V.F. Corporation shares are held by insiders. Comparatively, 58.4% of Vince Holding Corp. shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
This is a breakdown of recent ratings for V.F. Corporation and Vince Holding Corp., as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Vince Holding Corp.||0||2||2||0||2.50|
V.F. Corporation currently has a consensus target price of $60.24, indicating a potential downside of 3.59%. Vince Holding Corp. has a consensus target price of $3.88, indicating a potential upside of 645.19%. Given Vince Holding Corp.’s stronger consensus rating and higher possible upside, analysts plainly believe Vince Holding Corp. is more favorable than V.F. Corporation.
V.F. Corporation pays an annual dividend of $1.68 per share and has a dividend yield of 2.7%. Vince Holding Corp. does not pay a dividend. V.F. Corporation pays out 64.9% of its earnings in the form of a dividend. Vince Holding Corp. has increased its dividend for 44 consecutive years.
This table compares V.F. Corporation and Vince Holding Corp.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Vince Holding Corp.||-65.75%||-24.26%||-4.82%|
Risk and Volatility
V.F. Corporation has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500. Comparatively, Vince Holding Corp. has a beta of 1.84, suggesting that its share price is 84% more volatile than the S&P 500.
V.F. Corporation beats Vince Holding Corp. on 10 of the 16 factors compared between the two stocks.
V.F. Corporation Company Profile
V.F. Corporation (VF) is engaged in the design, production, procurement, marketing and distribution of branded lifestyle apparel, footwear and related products. The Company’s segments include Outdoor & Action Sports, Jeanswear, Imagewear and Sportswear. Its Outdoor & Action Sports Coalition is a group of authentic outdoor and activity-based lifestyle brands. Its product offerings include apparel, footwear, equipment, backpacks, luggage and accessories. Its Imagewear coalition consists of the Image business. Its Wrangler brand offers denim, apparel, accessories and footwear through mass merchants, specialty stores and department stores in the United States, VF-operated stores and online at www.wrangler.com. The Sportswear coalition consists of the Nautica and Kipling brand businesses in North America (the Kipling brand outside of North America is managed by the Outdoor & Action Sports coalition).
Vince Holding Corp. Company Profile
Vince Holding Corp. (Vince) is a United States-based company, which offers a range of women’s and men’s apparel, women’s and men’s footwear, and handbags. The Company operates as a fashion brand. The Company operates in two segments: Wholesale and Direct-to-consumer. The Company’s Wholesale segment consists of its operations to distribute products to various department stores and specialty stores in the United States and select international markets. The Company’s Direct-to-consumer segment consists of its operations to distribute products directly to the consumer through its branded specialty retail stores, outlet stores and e-commerce platform. The Company utilizes luxe fabrications and various techniques to create its product assortment. The Company serves its customers through various channels, including wholesale department stores and specialty stores in the United States, as well as through its branded retail locations and its Website.
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