Reviewing V.F. (VFC) and The Competition

V.F. (NYSE:VFC) is one of 117 public companies in the “Textiles, Apparel & Luxury Goods” industry, but how does it contrast to its rivals? We will compare V.F. to related businesses based on the strength of its institutional ownership, analyst recommendations, earnings, valuation, risk, dividends and profitability.

Volatility and Risk

V.F. has a beta of 1.49, meaning that its stock price is 49% more volatile than the S&P 500. Comparatively, V.F.’s rivals have a beta of 0.92, meaning that their average stock price is 8% less volatile than the S&P 500.

Insider & Institutional Ownership

86.8% of V.F. shares are owned by institutional investors. Comparatively, 54.4% of shares of all “Textiles, Apparel & Luxury Goods” companies are owned by institutional investors. 1.5% of V.F. shares are owned by company insiders. Comparatively, 15.1% of shares of all “Textiles, Apparel & Luxury Goods” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares V.F. and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
V.F.	3.93%	21.78%	4.14%
V.F. Competitors	-3.45%	12.79%	2.71%

Valuation and Earnings

This table compares V.F. and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
V.F.	$9.61 billion	$254.92 million	19.87
V.F. Competitors	$5.68 billion	$471.75 million	24.39

V.F. has higher revenue, but lower earnings than its rivals. V.F. is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Dividends

V.F. pays an annual dividend of $0.36 per share and has a dividend yield of 2.0%. V.F. pays out 39.1% of its earnings in the form of a dividend. As a group, “Textiles, Apparel & Luxury Goods” companies pay a dividend yield of 3.6% and pay out 23.0% of their earnings in the form of a dividend. V.F. lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Recommendations

This is a summary of recent ratings for V.F. and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
V.F.	0	14	5	2	2.43
V.F. Competitors	1648	7632	10047	361	2.46

V.F. currently has a consensus price target of $18.33, suggesting a potential upside of 0.29%. As a group, “Textiles, Apparel & Luxury Goods” companies have a potential upside of 16.12%. Given V.F.’s rivals stronger consensus rating and higher probable upside, analysts clearly believe V.F. has less favorable growth aspects than its rivals.

Summary

V.F. rivals beat V.F. on 8 of the 15 factors compared.

V.F. Company Profile

VF Corp. engages in the business of producing and marketing apparel, footwear, and accessories. It operates through the following segments: Outdoor, Active, Work, and Other. The Outdoor segment includes authentic outdoor-based lifestyle brands such as performance-based and outdoor apparel, footwear, and equipment. The Active segment focuses on activity-based lifestyle brands including active apparel, footwear, backpacks, luggage, and accessories. The Work segment offers work and work-inspired lifestyle brands with product offerings including apparel, footwear, and accessories. The Other segment refers to the sale of non-VF products and sourcing activities related to transition services. The company was founded by John Barbey in October 1899 and is headquartered in Denver, CO.