Critical Review: Vipshop (VIPS) vs. Its Competitors

Vipshop (NYSE: VIPS) is one of 20 publicly-traded companies in the “Catalog & mail-order houses” industry, but how does it compare to its competitors? We will compare Vipshop to similar companies based on the strength of its dividends, institutional ownership, valuation, profitability, risk, analyst recommendations and earnings.

Profitability

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This table compares Vipshop and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Vipshop 2.67% 25.75% 8.08%
Vipshop Competitors -0.91% -1,897.02% -2.41%

Analyst Recommendations

This is a summary of recent recommendations for Vipshop and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vipshop 0 3 9 0 2.75
Vipshop Competitors 106 507 1901 49 2.74

Vipshop presently has a consensus target price of $16.88, indicating a potential upside of 7.54%. As a group, “Catalog & mail-order houses” companies have a potential upside of 5.09%. Given Vipshop’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Vipshop is more favorable than its competitors.

Volatility and Risk

Vipshop has a beta of 2.27, meaning that its share price is 127% more volatile than the S&P 500. Comparatively, Vipshop’s competitors have a beta of 1.72, meaning that their average share price is 72% more volatile than the S&P 500.

Insider and Institutional Ownership

48.0% of Vipshop shares are held by institutional investors. Comparatively, 51.5% of shares of all “Catalog & mail-order houses” companies are held by institutional investors. 29.5% of Vipshop shares are held by company insiders. Comparatively, 34.4% of shares of all “Catalog & mail-order houses” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Vipshop and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Vipshop $11.21 billion $299.65 million 27.07
Vipshop Competitors $13.26 billion $329.84 million 37.34

Vipshop’s competitors have higher revenue and earnings than Vipshop. Vipshop is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

Vipshop beats its competitors on 7 of the 13 factors compared.

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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