Head-To-Head Contrast: Tilly’s (NYSE:TLYS) vs. Victoria’s Secret & Co. (NYSE:VSCO)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Tilly’s	-3.15%	-21.26%	-5.34%
Victoria’s Secret & Co.	2.45%	33.55%	5.14%

Analyst Recommendations

This is a summary of current ratings for Tilly’s and Victoria’s Secret & Co., as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tilly’s	1	3	0	0	1.75
Victoria’s Secret & Co.	0	5	7	1	2.69

Tilly’s presently has a consensus target price of $2.00, suggesting a potential downside of 54.60%. Victoria’s Secret & Co. has a consensus target price of $61.80, suggesting a potential upside of 37.99%. Given Victoria’s Secret & Co.’s stronger consensus rating and higher possible upside, analysts plainly believe Victoria’s Secret & Co. is more favorable than Tilly’s.

Insider & Institutional Ownership

76.4% of Tilly’s shares are owned by institutional investors. Comparatively, 90.3% of Victoria’s Secret & Co. shares are owned by institutional investors. 2.8% of Tilly’s shares are owned by insiders. Comparatively, 0.5% of Victoria’s Secret & Co. shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

Tilly’s has a beta of 0.1, meaning that its share price is 90% less volatile than the S&P 500. Comparatively, Victoria’s Secret & Co. has a beta of 2.18, meaning that its share price is 118% more volatile than the S&P 500.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tilly’s	$553.59 million	0.24	-$17.45 million	($0.59)	-7.47
Victoria’s Secret & Co.	$6.55 billion	0.54	$161.00 million	$1.86	24.08

Victoria’s Secret & Co. has higher revenue and earnings than Tilly’s. Tilly’s 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.

Summary

Victoria’s Secret & Co. beats Tilly’s on 14 of the 15 factors compared between the two stocks.

About Tilly’s

Tilly’s, Inc. engages in the retail of casual apparel, footwear, and accessories. Its stores are located in retail centers, including malls, lifestyle centers, power centers, community centers, outlet centers, and street-front locations. The company was founded by Hezy Shaked and Tilly Levine in 1982 and is headquartered in Irvine, CA.

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.