Victoria’s Secret & Co. (NYSE:VSXY – Get Free Report) and Floor & Decor (NYSE:FND – Get Free Report) are both mid-cap consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, institutional ownership, dividends, profitability, earnings and valuation.
Insider and Institutional Ownership
90.3% of Victoria’s Secret & Co. shares are owned by institutional investors. 0.5% of Victoria’s Secret & Co. shares are owned by company insiders. Comparatively, 1.8% of Floor & Decor shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Profitability
This table compares Victoria’s Secret & Co. and Floor & Decor’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Victoria’s Secret & Co. | 5.46% | 40.43% | 7.04% |
| Floor & Decor | 4.93% | 8.20% | 3.58% |
Earnings & Valuation
This table compares Victoria’s Secret & Co. and Floor & Decor”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Victoria’s Secret & Co. | $6.55 billion | 1.06 | $161.00 million | $3.45 | 25.34 |
| Floor & Decor | $4.71 billion | 1.02 | $208.65 million | $2.15 | 21.05 |
Floor & Decor has lower revenue, but higher earnings than Victoria’s Secret & Co.. Floor & Decor 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.
Volatility and Risk
Victoria’s Secret & Co. has a beta of 2.01, suggesting that its share price is 101% more volatile than the S&P 500. Comparatively, Floor & Decor has a beta of 1.6, suggesting that its share price is 60% more volatile than the S&P 500.
Analyst Ratings
This is a summary of recent ratings and target prices for Victoria’s Secret & Co. and Floor & Decor, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Victoria’s Secret & Co. | 0 | 7 | 8 | 0 | 2.53 |
| Floor & Decor | 3 | 12 | 5 | 0 | 2.10 |
Victoria’s Secret & Co. presently has a consensus price target of $91.25, indicating a potential upside of 4.36%. Floor & Decor has a consensus price target of $58.74, indicating a potential upside of 29.79%. Given Floor & Decor’s higher probable upside, analysts clearly believe Floor & Decor is more favorable than Victoria’s Secret & Co..
Summary
Victoria’s Secret & Co. beats Floor & Decor on 11 of the 14 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 Floor & Decor
Floor & Decor Holdings, Inc. engages in the retail of hard surface flooring and related accessories. It provides wood, stone, and flooring products. Its products include vinyl, laminate, and tiles with materials installation for living rooms, kitchen, bathrooms, and walls. The company was founded by George Vincent West in 2000 and is headquartered in Atlanta, GA.
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