Head to Head Survey: Vipshop (VIPS) and The Competition

Vipshop (NYSE:VIPS) is one of 142 publicly-traded companies in the “Broadline Retail” industry, but how does it contrast to its peers? We will compare Vipshop to similar companies based on the strength of its institutional ownership, profitability, earnings, analyst recommendations, risk, valuation and dividends.

Earnings & Valuation

This table compares Vipshop and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Vipshop	$15.15 billion	$1.04 billion	4.27
Vipshop Competitors	$24.25 billion	$1.71 billion	15.49

Vipshop’s peers have higher revenue and earnings than Vipshop. Vipshop is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Institutional and Insider Ownership

48.8% of Vipshop shares are owned by institutional investors. Comparatively, 44.6% of shares of all “Broadline Retail” companies are owned by institutional investors. 29.5% of Vipshop shares are owned by company insiders. Comparatively, 23.6% of shares of all “Broadline Retail” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Vipshop and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vipshop	9.88%	12.63%	7.09%
Vipshop Competitors	-3.00%	-38.43%	-2.57%

Dividends

Vipshop pays an annual dividend of $0.60 per share and has a dividend yield of 4.7%. Vipshop pays out 19.9% of its earnings in the form of a dividend. As a group, “Broadline Retail” companies pay a dividend yield of 17.9% and pay out 73.0% of their earnings in the form of a dividend.

Risk & Volatility

Vipshop has a beta of 0.57, meaning that its stock price is 43% less volatile than the S&P 500. Comparatively, Vipshop’s peers have a beta of 1.69, meaning that their average stock price is 69% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Vipshop and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vipshop	1	5	3	1	2.40
Vipshop Competitors	1404	5405	10877	309	2.56

Vipshop currently has a consensus price target of $17.16, suggesting a potential upside of 33.10%. As a group, “Broadline Retail” companies have a potential upside of 20.84%. Given Vipshop’s higher probable upside, analysts clearly believe Vipshop is more favorable than its peers.

Summary

Vipshop beats its peers on 8 of the 15 factors compared.

About Vipshop

Vipshop Holdings Limited operates online platforms in the People's Republic of China. It operates in Vip.com, Shan Shan Outlets, and Others segments. The company offers womenswear, menswear, sportswear and sporting goods, shoes and bags, accessories, baby and children products, skincare and cosmetics, home goods and other lifestyle products, and supermarket products. It also provides internet finance services, including consumer and supplier financing. In addition, the company engages in warehousing, retail business, product procurement, and software development and information technology support activities. The company provides branded products through its vip.com and vipshop.com online platforms, as well as through retail stores. Vipshop Holdings Limited was founded in 2008 and is headquartered in Guangzhou, the People's Republic of China.