Target Corporation (TGT) versus Vipshop Holdings Limited (VIPS) Critical Analysis
Target Corporation (NYSE: TGT) and Vipshop Holdings Limited (NYSE:VIPS) are both mid-cap retail/wholesale companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, profitability, valuation, risk, institutional ownership and earnings.
Insider & Institutional Ownership
83.3% of Target Corporation shares are held by institutional investors. Comparatively, 56.4% of Vipshop Holdings Limited shares are held by institutional investors. 0.3% of Target Corporation 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, endowments and hedge funds believe a stock will outperform the market over the long term.
Risk & Volatility
Target Corporation has a beta of 0.6, suggesting that its stock price is 40% less volatile than the S&P 500. Comparatively, Vipshop Holdings Limited has a beta of 1.95, suggesting that its stock price is 95% more volatile than the S&P 500.
Earnings and Valuation
This table compares Target Corporation and Vipshop Holdings Limited’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Target Corporation||$69.58 billion||0.47||$7.14 billion||$4.96||11.99|
|Vipshop Holdings Limited||$9.65 billion||0.60||$595.67 million||$0.49||20.18|
Target Corporation has higher revenue and earnings than Vipshop Holdings Limited. Target Corporation 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.
This is a summary of recent recommendations and price targets for Target Corporation and Vipshop Holdings Limited, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Vipshop Holdings Limited||2||3||7||0||2.42|
Target Corporation presently has a consensus price target of $62.05, indicating a potential upside of 4.35%. Vipshop Holdings Limited has a consensus price target of $14.44, indicating a potential upside of 46.01%. Given Vipshop Holdings Limited’s stronger consensus rating and higher probable upside, analysts clearly believe Vipshop Holdings Limited is more favorable than Target Corporation.
This table compares Target Corporation and Vipshop Holdings Limited’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Vipshop Holdings Limited||3.17%||40.08%||10.16%|
Target Corporation pays an annual dividend of $2.48 per share and has a dividend yield of 4.2%. Vipshop Holdings Limited does not pay a dividend. Target Corporation pays out 50.0% of its earnings in the form of a dividend. Vipshop Holdings Limited has raised its dividend for 49 consecutive years.
Vipshop Holdings Limited beats Target Corporation on 11 of the 17 factors compared between the two stocks.
About Target Corporation
Target Corporation (Target) is a general merchandise retailer selling products through its stores and digital channels. Its general merchandise stores offer an edited food assortment, including perishables, dry grocery, dairy and frozen items. Its digital channels include a range of general merchandise, including a range of items found in its stores, along with an assortment, such as additional sizes and colors sold only online. Its owned brands include Archer Farms, Market Pantry, Sutton & Dodge, Art Class, Merona, Threshold, Ava & Viv, Pillowfort, Room Essentials, Wine Cube, Cat & Jack, Simply Balanced and Wondershop. Its exclusive brands include C9 by Champion, Hand Made Modern, Mossimo, DENIZEN from Levi’s, Nate Berkus for Target, Fieldcrest, Kid Made Modern, Genuine Kids from OshKosh and Liz Lange for Target. As of January 28, 2017, the Company had 1,802 stores across the United States, including 1,535 owned stores, 107 leased stores and 160 owned buildings on leased land.
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.
Receive News & Ratings for Target Corporation Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Target Corporation and related companies with MarketBeat.com's FREE daily email newsletter.