Financial Survey: Woolworths (OTCMKTS:WLWHY) versus Victoria’s Secret & Co. (NYSE:VSXY)

Woolworths (OTCMKTS:WLWHY) and Victoria’s Secret & Co. (NYSE:VSXY) are both mid-cap retail/wholesale companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, earnings, risk, profitability, analyst recommendations, institutional ownership and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Woolworths	N/A	N/A	N/A
Victoria’s Secret & Co.	3.11%	38.03%	6.10%

Risk and Volatility

Woolworths has a beta of 0.42, meaning that its stock price is 58% less volatile than the S&P 500. Comparatively, Victoria’s Secret & Co. has a beta of 2.16, meaning that its stock price is 116% more volatile than the S&P 500.

Institutional and Insider 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. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Woolworths and Victoria’s Secret & Co., as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Woolworths	0	1	0	1	3.00
Victoria’s Secret & Co.	0	6	6	1	2.62

Victoria’s Secret & Co. has a consensus price target of $82.60, suggesting a potential upside of 4.12%. Given Victoria’s Secret & Co.’s higher probable upside, analysts clearly believe Victoria’s Secret & Co. is more favorable than Woolworths.

Valuation and Earnings

This table compares Woolworths and Victoria’s Secret & Co.”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Woolworths	$4.42 billion	0.76	$134.61 million	N/A	N/A
Victoria’s Secret & Co.	$6.55 billion	0.96	$161.00 million	$1.86	42.65

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

Summary

Victoria’s Secret & Co. beats Woolworths on 11 of the 12 factors compared between the two stocks.

About Woolworths

Woolworths Holdings Limited, through its subsidiaries, operates a chain of retail stores in South Africa, Australia, and New Zealand. It operates through seven segments: Woolworths Fashion, Beauty and Home; Woolworths Food; Woolworths Financial Services; Woolworths Logistics; Country Road Group; and Treasury. The company provides food, clothing, homeware, beauty, and various lifestyle products. It offers financial products and services, such as store cards, credit cards, personal loans, and other financial products. The company is also involved in the cash and debt management activities. Woolworths Holdings Limited was incorporated in 1929 and is based in Cape Town, South Africa.

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.