Comparing Vipshop (VIPS) & Its Peers

Vipshop (NYSE: VIPS) is one of 20 publicly-traded companies in the “Catalog & mail-order houses” industry, but how does it compare to its competitors? We will compare Vipshop to similar businesses based on the strength of its valuation, analyst recommendations, dividends, institutional ownership, risk, earnings and profitability.

Valuation and Earnings

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This table compares Vipshop and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Vipshop $11.21 billion $299.65 million 27.41
Vipshop Competitors $13.26 billion $329.84 million 35.67

Vipshop’s competitors have higher revenue and earnings than Vipshop. Vipshop is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Risk and Volatility

Vipshop has a beta of 2.27, meaning that its stock price is 127% more volatile than the S&P 500. Comparatively, Vipshop’s competitors have a beta of 1.71, meaning that their average stock price is 71% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Vipshop and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vipshop 0 3 9 0 2.75
Vipshop Competitors 107 502 1897 48 2.74

Vipshop presently has a consensus price target of $16.88, suggesting a potential upside of 6.18%. As a group, “Catalog & mail-order houses” companies have a potential upside of 10.20%. Given Vipshop’s competitors higher probable upside, analysts clearly believe Vipshop has less favorable growth aspects than its competitors.

Profitability

This table compares Vipshop and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Vipshop 2.67% 25.75% 8.08%
Vipshop Competitors -0.91% -1,897.02% -2.41%

Institutional & Insider Ownership

48.0% of Vipshop shares are held by institutional investors. Comparatively, 57.2% of shares of all “Catalog & mail-order houses” companies are held by institutional investors. 29.6% of shares of all “Catalog & mail-order houses” companies 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.

Summary

Vipshop competitors beat Vipshop on 7 of the 13 factors compared.

Vipshop Company Profile

Vipshop Holdings Limited, through its subsidiaries, operates as an online discount retailer for various brands in the People's Republic of China. It offers a range of branded products, including women's apparel, such as casual wear, jeans, dresses, outerwear, swimsuits, lingerie, pajamas, and maternity clothes; men's apparel comprising casual and smart-casual T-shirts, polo shirts, jackets, pants, and underwear; women and men shoes for casual and formal occasions; and accessories consisting of belts, fashionable jewelry, watches, and glasses for women and men. The company also provides handbags, such as purses, satchels, duffel bags, and wallets; apparel, gear and accessories, furnishings and decor, toys, and games for boys, girls, infants, and toddlers of all age groups; sports apparel, and sports gear, and footwear for tennis, badminton, soccer, and swimming; and skin care and cosmetic products, including cleansers, lotions, face and body creams, face masks, sunscreen, foundations, lipsticks, eye shadows, and nail polish. In addition, it offers home furnishing products comprising bedding and bath products, home decors, and dining and tabletop items; small household appliances; designer apparel, footwear and accessories; and snacks, health supplements, and occasion-based gifts, such as chocolates, moon-cakes, and tea. Further, the company provides consumer financing, supply chain financing, and wealth management services. The company provides its branded products through its vipshop.com, vip.com, and lefeng.com Websites, as well as through its cellular phone application. Vipshop Holdings Limited was founded in 2008 and is headquartered in Guangzhou, the People's Republic of China.

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