V.F. (NYSE:VFC) vs. Zuoan Fashion (OTCMKTS:ZAHLY) Critical Survey

Zuoan Fashion (OTCMKTS:ZAHLY) and V.F. (NYSE:VFC) are both consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, analyst recommendations, risk, earnings and profitability.

Insider & Institutional Ownership

86.8% of V.F. shares are held by institutional investors. 1.5% of V.F. shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Zuoan Fashion and V.F.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Zuoan Fashion	N/A	N/A	N/A
V.F.	2.88%	18.91%	3.26%

Analyst Recommendations

This is a summary of recent ratings and price targets for Zuoan Fashion and V.F., as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zuoan Fashion	0	0	0	0	0.00
V.F.	2	12	3	2	2.26

V.F. has a consensus price target of $18.21, indicating a potential upside of 31.31%. Given V.F.’s stronger consensus rating and higher probable upside, analysts plainly believe V.F. is more favorable than Zuoan Fashion.

Valuation and Earnings

This table compares Zuoan Fashion and V.F.”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zuoan Fashion	N/A	N/A	N/A	N/A	N/A
V.F.	$9.61 billion	0.57	$254.92 million	$0.69	20.09

V.F. has higher revenue and earnings than Zuoan Fashion.

Summary

V.F. beats Zuoan Fashion on 10 of the 10 factors compared between the two stocks.

About Zuoan Fashion

Zuoan Fashion Limited is a casual menswear company. The Company’s products are designed in-house and sold under the Zuoan brand. The Company offers a range of products, including men’s casual apparel, footwear and lifestyle accessories, primarily targeting urban males between the ages of 20 and 40. The Company’s apparel products include blazers, jackets, sweaters, shirts, T-shirts, leather jackets, down jackets, pants and jeans. The Company’s accessories include shoes, bags, ties, belts, socks and scarves. The Company sells its products through a distribution network covering 30 of China’s 32 provinces and centrally administered municipalities, as well as through its direct stores. The Company’s products are primarily sold to customers through retail stores operated by its distributors and their sub-distributors.

About V.F.

VF Corp. engages in the business of producing and marketing apparel, footwear, and accessories. It operates through the following segments: Outdoor, Active, Work, and Other. The Outdoor segment includes authentic outdoor-based lifestyle brands such as performance-based and outdoor apparel, footwear, and equipment. The Active segment focuses on activity-based lifestyle brands including active apparel, footwear, backpacks, luggage, and accessories. The Work segment offers work and work-inspired lifestyle brands with product offerings including apparel, footwear, and accessories. The Other segment refers to the sale of non-VF products and sourcing activities related to transition services. The company was founded by John Barbey in October 1899 and is headquartered in Denver, CO.