Reviewing Victoria’s Secret & Co. (NYSE:VSXY) & Woolworths (OTCMKTS:WLWHY)

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

Earnings & Valuation

This table compares Victoria’s Secret & Co. and Woolworths”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Victoria’s Secret & Co.	$6.55 billion	1.07	$161.00 million	$1.86	47.26
Woolworths	$4.42 billion	0.73	$134.61 million	N/A	N/A

Victoria’s Secret & Co. has higher revenue and earnings than Woolworths.

Risk and Volatility

Victoria’s Secret & Co. has a beta of 2.16, meaning that its stock price is 116% more volatile than the S&P 500. Comparatively, Woolworths has a beta of 0.42, meaning that its stock price is 58% less volatile than the S&P 500.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Victoria’s Secret & Co.	0	6	6	1	2.62
Woolworths	0	1	0	1	3.00

Victoria’s Secret & Co. currently has a consensus target price of $82.60, indicating a potential downside of 6.03%. Given Victoria’s Secret & Co.’s higher probable upside, equities analysts clearly believe Victoria’s Secret & Co. is more favorable than Woolworths.

Institutional and Insider Ownership

90.3% of Victoria’s Secret & Co. shares are owned by institutional investors. 0.5% of Victoria’s Secret & Co. shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Victoria’s Secret & Co.	3.11%	38.03%	6.10%
Woolworths	N/A	N/A	N/A

Summary

Victoria’s Secret & Co. beats Woolworths on 11 of the 12 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 Woolworths

Woolworths Holdings Limited, through its subsidiaries, operates a chain of retail stores in South Africa, Australia, and New Zealand. It operates through seven segments: Woolworths Fashion, Beauty and Home; Woolworths Food; Woolworths Financial Services; Woolworths Logistics; Country Road Group; and Treasury. The company provides food, clothing, homeware, beauty, and various lifestyle products. It offers financial products and services, such as store cards, credit cards, personal loans, and other financial products. The company is also involved in the cash and debt management activities. Woolworths Holdings Limited was incorporated in 1929 and is based in Cape Town, South Africa.