Analyzing QuinStreet (NASDAQ:QNST) and Vipshop (NYSE:VIPS)

Vipshop (NYSE:VIPS) and QuinStreet (NASDAQ:QNST) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, dividends, earnings and risk.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Vipshop and QuinStreet, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vipshop	0	5	1	0	2.17
QuinStreet	0	1	4	0	2.80

Vipshop presently has a consensus price target of $15.10, suggesting a potential upside of 0.90%. QuinStreet has a consensus price target of $29.00, suggesting a potential upside of 83.02%. Given QuinStreet’s stronger consensus rating and higher possible upside, analysts clearly believe QuinStreet is more favorable than Vipshop.

Profitability

This table compares Vipshop and QuinStreet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vipshop	6.87%	18.04%	10.21%
QuinStreet	-0.06%	1.08%	0.61%

Valuation and Earnings

This table compares Vipshop and QuinStreet”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vipshop	$14.85 billion	0.52	$1.06 billion	$1.91	7.84
QuinStreet	$613.51 million	1.46	-$31.33 million	($0.01)	-1,584.50

Vipshop has higher revenue and earnings than QuinStreet. QuinStreet is trading at a lower price-to-earnings ratio than Vipshop, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

48.8% of Vipshop shares are held by institutional investors. Comparatively, 97.8% of QuinStreet shares are held by institutional investors. 29.5% of Vipshop shares are held by company insiders. Comparatively, 5.0% of QuinStreet shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility & Risk

Vipshop has a beta of 0.57, suggesting that its share price is 43% less volatile than the S&P 500. Comparatively, QuinStreet has a beta of 0.74, suggesting that its share price is 26% less volatile than the S&P 500.

Summary

Vipshop beats QuinStreet on 8 of the 14 factors compared between the two stocks.

About Vipshop

Vipshop Holdings Limited operates online platforms in the People's Republic of China. It operates in Vip.com, Shan Shan Outlets, and Others segments. The company offers womenswear, menswear, sportswear and sporting goods, shoes and bags, accessories, baby and children products, skincare and cosmetics, home goods and other lifestyle products, and supermarket products. It also provides internet finance services, including consumer and supplier financing. In addition, the company engages in warehousing, retail business, product procurement, and software development and information technology support activities. The company provides branded products through its vip.com and vipshop.com online platforms, as well as through retail stores. Vipshop Holdings Limited was founded in 2008 and is headquartered in Guangzhou, the People's Republic of China.

About QuinStreet

QuinStreet, Inc., an online performance marketing company, provides customer acquisition services for its clients in the United States and internationally. The company offers online marketing services, such as qualified clicks, leads, calls, applications, and customers through its websites or third-party publishers. It serves financial and home services industries. The company was incorporated in 1999 and is headquartered in Foster City, California.