Head-To-Head Review: Innovative Designs (OTCMKTS:IVDN) and Vince (NYSE:VNCE)

Vince (NYSE:VNCE) and Innovative Designs (OTCMKTS:IVDN) are both small-cap consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, earnings, profitability, analyst recommendations, institutional ownership and dividends.

Valuation & Earnings

This table compares Vince and Innovative Designs”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vince	$291.29 million	0.12	-$19.05 million	($1.34)	-1.88
Innovative Designs	$1.38 million	5.52	$100,000.00	$0.03	6.60

Innovative Designs has lower revenue, but higher earnings than Vince. Vince is trading at a lower price-to-earnings ratio than Innovative Designs, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Vince and Innovative Designs, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vince	1	0	1	1	2.67
Innovative Designs	0	0	0	0	0.00

Vince presently has a consensus price target of $4.50, suggesting a potential upside of 78.22%. Given Vince’s stronger consensus rating and higher probable upside, equities analysts plainly believe Vince is more favorable than Innovative Designs.

Profitability

This table compares Vince and Innovative Designs’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vince	-5.75%	11.37%	2.26%
Innovative Designs	18.54%	29.89%	26.00%

Volatility & Risk

Vince has a beta of 0.85, indicating that its stock price is 15% less volatile than the S&P 500. Comparatively, Innovative Designs has a beta of -2.99, indicating that its stock price is 399% less volatile than the S&P 500.

Institutional and Insider Ownership

16.1% of Vince shares are owned by institutional investors. 61.0% of Vince shares are owned by insiders. Comparatively, 24.4% of Innovative Designs shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Vince beats Innovative Designs on 8 of the 15 factors compared between the two stocks.

About Vince

Vince Holding Corp. provides luxury apparel and accessories in the United States and internationally. It operates through Vince Wholesale, Vince Direct-to-Consumer segments. The company offers a range of men's and women's products, such as cashmere sweaters, silk blouses, leather and suede products, and jackets, dresses, skirts, pants, t-shirts, footwear, outerwear, and accessories, as well as woven shirts, core and fashion pants, and blazers under the Vince brand. It sells its products directly to consumers through its branded specialty retail stores and outlet stores, as well as through its vince.com e-commerce platform and subscription business through Vince Unfold, vinceunfold.com; and to department stores and specialty stores. The company was formerly known as Apparel Holding Corp. and changed its name to Vince Holding Corp. in November 2013. The company was founded in 2002 and is headquartered in New York, New York.

About Innovative Designs

Innovative Designs, Inc. engages in manufacture and marketing of cold weather recreational and industrial clothing products in the United States and Canada. The company operates in two segments, Apparel and House Wrap. It offers arctic armor line products, including jackets, bibs, and gloves for ice fisherman, snowmobilers, utility workers, oil/gas pipeline workers, railroad workers, construction workers, ski resort workers, and police and first responders; and house wrap that provides barrier protection and moisture vapor transmission and insulation for the building construction industry. In addition, it offers INSULTEX material in bulk to non-competing customers; products that restore the waterproof character of the outer side of its arctic armor clothing; and cold weather headgears and base insulation clothing products. The company primarily sells its products through independent sales agents, agencies, retailers, and distributors, as well as through website. The company was incorporated in 2002 and is based in Pittsburgh, Pennsylvania.