Financial Contrast: Petco Health and Wellness (NASDAQ:WOOF) vs. Victoria’s Secret & Co. (NYSE:VSXY)

Victoria’s Secret & Co. (NYSE:VSXY) and Petco Health and Wellness (NASDAQ:WOOF) are both consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitability, dividends, institutional ownership, valuation, analyst recommendations and risk.

Insider & 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, 6.5% of Petco Health and Wellness shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Victoria’s Secret & Co. and Petco Health and Wellness’ 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%
Petco Health and Wellness	0.51%	3.44%	0.78%

Volatility & Risk

Victoria’s Secret & Co. has a beta of 2.11, suggesting that its stock price is 111% more volatile than the S&P 500. Comparatively, Petco Health and Wellness has a beta of 1.59, suggesting that its stock price is 59% more volatile than the S&P 500.

Earnings and Valuation

This table compares Victoria’s Secret & Co. and Petco Health and Wellness”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Victoria’s Secret & Co.	$6.91 billion	1.14	$161.00 million	$3.45	28.52
Petco Health and Wellness	$5.97 billion	0.15	$9.07 million	$0.10	27.40

Victoria’s Secret & Co. has higher revenue and earnings than Petco Health and Wellness. Petco Health and Wellness 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.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Victoria’s Secret & Co. and Petco Health and Wellness, 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
Petco Health and Wellness	1	6	1	1	2.22

Victoria’s Secret & Co. currently has a consensus target price of $92.00, suggesting a potential downside of 6.50%. Petco Health and Wellness has a consensus target price of $3.42, suggesting a potential upside of 24.82%. Given Petco Health and Wellness’ higher probable upside, analysts clearly believe Petco Health and Wellness is more favorable than Victoria’s Secret & Co..

Summary

Victoria’s Secret & Co. beats Petco Health and Wellness on 12 of the 15 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 Petco Health and Wellness

Petco Health and Wellness Company, Inc., operates as a health and wellness company, focuses on enhancing the lives of pets, pet parents, and its Petco partners in the United States, Mexico, and Puerto Rico. The company provides veterinary care, grooming, training, tele-health, and Vital Care and pet health insurance services, as well as veterinary services through Vetco mobile clinics. It also offers pet consumables, supplies, and services through its petco.com, petcoach.co, petinsurancequotes.com, and pupbox.com websites. The company offers its products under the WholeHearted, Reddy, and Well & Good brands. Petco Health and Wellness Company, Inc. was founded in 1965 and is headquartered in San Diego, California.