Head to Head Review: Victoria’s Secret & Co. (NYSE:VSCO) & Capri (NYSE:CPRI)

Victoria’s Secret & Co. (NYSE:VSCO) and Capri (NYSE:CPRI) are both mid-cap retail/wholesale companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, earnings, dividends and risk.

Insider and Institutional Ownership

90.3% of Victoria’s Secret & Co. shares are owned by institutional investors. Comparatively, 84.3% of Capri shares are owned by institutional investors. 0.5% of Victoria’s Secret & Co. shares are owned by company insiders. Comparatively, 2.3% of Capri shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and target prices for Victoria’s Secret & Co. and Capri, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Victoria’s Secret & Co.	0	7	7	0	2.50
Capri	1	7	6	1	2.47

Victoria’s Secret & Co. currently has a consensus price target of $55.20, indicating a potential downside of 2.95%. Capri has a consensus price target of $26.46, indicating a potential upside of 32.76%. Given Capri’s higher possible upside, analysts plainly believe Capri is more favorable than Victoria’s Secret & Co..

Volatility and Risk

Victoria’s Secret & Co. has a beta of 2.21, indicating that its stock price is 121% more volatile than the S&P 500. Comparatively, Capri has a beta of 1.45, indicating that its stock price is 45% more volatile than the S&P 500.

Earnings and Valuation

This table compares Victoria’s Secret & Co. and Capri”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Victoria’s Secret & Co.	$6.23 billion	0.73	$165.00 million	$2.05	27.75
Capri	$4.44 billion	0.53	-$1.18 billion	($4.26)	-4.68

Victoria’s Secret & Co. has higher revenue and earnings than Capri. Capri is trading at a lower price-to-earnings ratio than Victoria’s Secret & Co., indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Victoria’s Secret & Co. and Capri’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Victoria’s Secret & Co.	2.67%	33.47%	4.82%
Capri	-13.57%	-430.23%	-8.70%

Summary

Victoria’s Secret & Co. beats Capri on 12 of the 15 factors compared between the two stocks.

About Victoria’s Secret & Co.

Victoria’s Secret & Co. operates as a lingerie, clothing and beauty retailer. It offers bras, panties, lingerie, pajamas, sleep, sport and swim apparel, and beauty products. The company was founded in 1963 and is headquartered in Reynoldsburg, OH.

About Capri

Capri Holdings Limited designs, markets, distributes, and retails branded women's and men's apparel, footwear, and accessories in the United States, Canada, Latin America, Europe, the Middle East, Africa, and Asia. It operates through three segments: Versace, Jimmy Choo, and Michael Kors. The company offers ready-to-wear, accessories, footwear, handbags, scarves and belts, small leather goods, eyewear, watches, jewelry, fragrances, and home furnishings through a distribution network, including boutiques, department, and specialty stores, as well as through e-commerce sites. It also engages in licensing agreements to the manufacture and sale of watches, jewelry, eyewear, and fragrances. The company was formerly known as Michael Kors Holdings Limited and changed its name to Capri Holdings Limited in December 2018. Capri Holdings Limited was founded in 1981 and is headquartered in London, the United Kingdom.