VF (NYSE: VFC) and Perry Ellis International (NASDAQ:PERY) are both consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, earnings, analyst recommendations and dividends.
Insider and Institutional Ownership
74.4% of Perry Ellis International shares are held by institutional investors. 1.7% of VF shares are held by company insiders. Comparatively, 22.2% of Perry Ellis International shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
This table compares VF and Perry Ellis International’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Perry Ellis International||6.48%||9.55%||5.47%|
VF pays an annual dividend of $1.84 per share and has a dividend yield of 2.4%. Perry Ellis International does not pay a dividend. VF pays out 61.7% of its earnings in the form of a dividend. VF has raised its dividend for 45 consecutive years.
Earnings and Valuation
This table compares VF and Perry Ellis International’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|VF||$11.81 billion||2.61||$614.92 million||$2.98||26.10|
|Perry Ellis International||$874.85 million||0.48||$56.65 million||$2.13||12.38|
VF has higher revenue and earnings than Perry Ellis International. Perry Ellis International is trading at a lower price-to-earnings ratio than VF, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
VF has a beta of 0.93, indicating that its share price is 7% less volatile than the S&P 500. Comparatively, Perry Ellis International has a beta of 0.43, indicating that its share price is 57% less volatile than the S&P 500.
This is a summary of recent ratings and price targets for VF and Perry Ellis International, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Perry Ellis International||0||2||4||0||2.67|
VF presently has a consensus price target of $76.81, indicating a potential downside of 1.25%. Perry Ellis International has a consensus price target of $30.00, indicating a potential upside of 13.77%. Given Perry Ellis International’s stronger consensus rating and higher possible upside, analysts plainly believe Perry Ellis International is more favorable than VF.
VF beats Perry Ellis International on 11 of the 17 factors compared between the two stocks.
V.F. Corporation engages in the design, production, procurement, marketing, and distribution of branded lifestyle apparel, footwear, and related products for men, women, and children in the Americas, Europe, and the Asia Pacific. It operates through four segments: Outdoor & Action Sports, Jeanswear, Imagewear, and Other. The company offers outdoor apparel, youth culture/action sports-inspired footwear, footwear and equipment, handbags, luggage, backpacks, totes, accessories, backpacks, surfing-inspired footwear, merino wool socks, and travel accessories under The North Face, Vans, Timberland, Kipling, Napapijri, JanSport, Reef, Smartwool, Eastpak, and Eagle Creek brands. It also provides denim, casual apparel, footwear, and accessories under the Wrangler, Lee, Riders by Lee, Rustler, and Rock & Republic brands. In addition, the company offers occupational, protective occupational, work and work-inspired lifestyle, and outdoor work and hunt apparel, as well as protective work and lifestyle footwear under the Red Kap, Bulwark, Horace Small, Dickies, Workrite, Kodiak, Terra, and Walls brands. It sells its products primarily to specialty stores, department stores, national chains, and mass merchants, as well as sells through direct-to-consumer operations, concession retail stores, and e-commerce sites. V.F. Corporation was founded in 1899 and is headquartered in Greensboro, North Carolina.
About Perry Ellis International
Perry Ellis International, Inc. designs, sources, markets, and licenses apparel products and accessories. The company operates through Men's Sportswear and Swim, Women's Sportswear, Direct-to-Consumer, and Licensing segments. It offers men's wear, such as career and casual sportswear, golf apparel, sports apparel, swimwear, activewear, and accessories; and women's wear, including dresses, sportswear, swimwear, activewear, and accessories. The company provides its products under various brands comprising Ben Hogan, Cubavera, Farah, Grand Slam, Jantzen, Laundry by Shelli Segal, Original Penguin by Munsingwear, Perry Ellis, Rafaella, and Savane. It also licenses the Callaway Golf, PGA TOUR, and Jack Nicklaus brands for golf apparel; the Jag brand for swimwear and cover-ups; and the Nike brand for swimwear and accessories, as well as Pro Player, John Henry, and Gotcha brands. The company distributes its products to wholesale customers that represent various levels of retail distribution, including luxury stores, department stores, national and regional chain stores, mass merchants, specialty stores, sporting goods stores, the corporate wear market, and e-commerce, as well as clubs and independent retailers. As of April 1, 2017, it operated 38 Perry Ellis, 14 Original Penguin, and 2 multi-brand retail outlet stores located primarily in upscale retail outlet malls in the United States, the United Kingdom, and Puerto Rico; and 2 Perry Ellis, 2 Cubavera, 12 Original Penguin, and 1 multi-brand full price retail stores located in upscale demographic markets in the United States and the United Kingdom. The company was formerly known as Supreme International Corporation and changed its name to Perry Ellis International, Inc. in 1999. Perry Ellis International, Inc. was founded in 1967 and is headquartered in Miami, Florida.
Receive News & Ratings for VF Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for VF and related companies with MarketBeat.com's FREE daily email newsletter.