Overstock.com (OSTK) versus Vipshop (VIPS) Head to Head Analysis

Overstock.com (NASDAQ: OSTK) and Vipshop (NYSE:VIPS) are both retail/wholesale companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, institutional ownership, profitability and dividends.

Profitability

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

Net Margins Return on Equity Return on Assets
Overstock.com -8.81% -69.29% -29.31%
Vipshop 2.51% 20.24% 7.24%

Valuation & Earnings

This table compares Overstock.com and Vipshop’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Overstock.com $1.74 billion 0.60 -$109.87 million ($1.81) -20.03
Vipshop $11.21 billion 0.72 $299.65 million $0.58 21.29

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

Risk and Volatility

Overstock.com has a beta of 1.75, suggesting that its stock price is 75% more volatile than the S&P 500. Comparatively, Vipshop has a beta of 2.3, suggesting that its stock price is 130% more volatile than the S&P 500.

Insider & Institutional Ownership

57.3% of Overstock.com shares are held by institutional investors. Comparatively, 49.0% of Vipshop shares are held by institutional investors. 24.2% of Overstock.com shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Overstock.com and Vipshop, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Overstock.com 0 0 1 0 3.00
Vipshop 1 4 5 0 2.40

Overstock.com currently has a consensus price target of $100.00, suggesting a potential upside of 175.86%. Vipshop has a consensus price target of $16.26, suggesting a potential upside of 31.66%. Given Overstock.com’s stronger consensus rating and higher possible upside, analysts plainly believe Overstock.com is more favorable than Vipshop.

Summary

Vipshop beats Overstock.com on 10 of the 14 factors compared between the two stocks.

Overstock.com Company Profile

Overstock.com, Inc. operates as an online retailer in the United States. It operates in two segments, Direct and Partner. The company offers home and garden products, including furniture, home decor, garden and patio, kitchen and dining, bedding, home improvement, housewares, and other related products; jewelry and watches; clothing and accessories; electronics and computers; and other products. It also provides handcrafted products; new, used, and certified pre-owned cars; and loans, credit cards, and insurance, as well as access links to automated financial advisory and discounted stock brokerage services. The company sells its products and services through its Internet Websites located at overstock.com, o.co, and o.biz, as well as through third party logistics providers to international customers. The company was formerly known as D2-Discounts Direct and changed its name to Overstock.com, Inc. in October 1999. Overstock.com, Inc. was founded in 1997 and is headquartered in Midvale, Utah.

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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