Analyzing Capri (NYSE:CPRI) & Victoria’s Secret & Co. (NYSE:VSCO)

Victoria’s Secret & Co. (NYSE:VSCO) and Capri (NYSE:CPRI) are both mid-cap retail/wholesale companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, earnings, profitability, institutional ownership, risk, valuation and analyst recommendations.

Profitability

This table compares Victoria’s Secret & Co. and Capri’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Victoria’s Secret & Co.	2.67%	33.47%	4.82%
Capri	-13.57%	-430.23%	-8.70%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Victoria’s Secret & Co. and Capri, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Victoria’s Secret & Co.	0	7	7	0	2.50
Capri	1	7	6	1	2.47

Victoria’s Secret & Co. presently has a consensus target price of $55.20, indicating a potential downside of 6.85%. Capri has a consensus target price of $26.46, indicating a potential upside of 31.06%. Given Capri’s higher probable upside, analysts clearly believe Capri is more favorable than Victoria’s Secret & Co..

Volatility & Risk

Victoria’s Secret & Co. has a beta of 2.21, indicating that its stock price is 121% more volatile than the S&P 500. Comparatively, Capri has a beta of 1.45, indicating that its stock price is 45% more volatile than the S&P 500.

Valuation and Earnings

This table compares Victoria’s Secret & Co. and Capri”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Victoria’s Secret & Co.	$6.23 billion	0.76	$165.00 million	$2.05	28.91
Capri	$4.44 billion	0.54	-$1.18 billion	($4.26)	-4.74

Victoria’s Secret & Co. has higher revenue and earnings than Capri. Capri is trading at a lower price-to-earnings ratio than Victoria’s Secret & Co., indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

90.3% of Victoria’s Secret & Co. shares are held by institutional investors. Comparatively, 84.3% of Capri shares are held by institutional investors. 0.5% of Victoria’s Secret & Co. shares are held by company insiders. Comparatively, 2.3% of Capri shares are held by company 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.

Summary

Victoria’s Secret & Co. beats Capri on 12 of the 15 factors compared between the two stocks.

About Victoria’s Secret & Co.

Victoria’s Secret & Co. operates as a lingerie, clothing and beauty retailer. It offers bras, panties, lingerie, pajamas, sleep, sport and swim apparel, and beauty products. The company was founded in 1963 and is headquartered in Reynoldsburg, OH.

About Capri

Capri Holdings Limited designs, markets, distributes, and retails branded women's and men's apparel, footwear, and accessories in the United States, Canada, Latin America, Europe, the Middle East, Africa, and Asia. It operates through three segments: Versace, Jimmy Choo, and Michael Kors. The company offers ready-to-wear, accessories, footwear, handbags, scarves and belts, small leather goods, eyewear, watches, jewelry, fragrances, and home furnishings through a distribution network, including boutiques, department, and specialty stores, as well as through e-commerce sites. It also engages in licensing agreements to the manufacture and sale of watches, jewelry, eyewear, and fragrances. The company was formerly known as Michael Kors Holdings Limited and changed its name to Capri Holdings Limited in December 2018. Capri Holdings Limited was founded in 1981 and is headquartered in London, the United Kingdom.