Vipshop (NYSE:VIPS) vs. SEA (NYSE:SE) Financial Analysis

Vipshop (NYSE:VIPS) and SEA (NYSE:SE) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, valuation, earnings, profitability, analyst recommendations, dividends and risk.

Earnings and Valuation

This table compares Vipshop and SEA”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vipshop	$15.15 billion	0.45	$1.04 billion	$2.13	6.61
SEA	$22.94 billion	3.10	$1.58 billion	$2.59	45.00

SEA has higher revenue and earnings than Vipshop. Vipshop is trading at a lower price-to-earnings ratio than SEA, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Vipshop and SEA, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vipshop	1	4	4	1	2.50
SEA	1	3	8	1	2.69

Vipshop presently has a consensus target price of $21.02, suggesting a potential upside of 49.24%. SEA has a consensus target price of $151.90, suggesting a potential upside of 30.33%. Given Vipshop’s higher probable upside, equities analysts clearly believe Vipshop is more favorable than SEA.

Risk & Volatility

Vipshop has a beta of 0.67, suggesting that its stock price is 33% less volatile than the S&P 500. Comparatively, SEA has a beta of 1.54, suggesting that its stock price is 54% more volatile than the S&P 500.

Insider & Institutional Ownership

48.8% of Vipshop shares are held by institutional investors. Comparatively, 59.5% of SEA shares are held by institutional investors. 29.5% of Vipshop shares are held by company insiders. Comparatively, 0.2% of SEA shares are held 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 Vipshop and SEA’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vipshop	7.08%	16.90%	9.47%
SEA	5.98%	13.54%	5.59%

Summary

SEA beats Vipshop on 9 of the 14 factors compared between the two stocks.

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.

About SEA

Sea Ltd. is an internet and mobile platform company, which engages in the provision of online gaming services. It operates through the following segments: Digital Entertainment, E-Commerce, and Digital Financial Services. The Digital Entertainment segment offers and develops mobile and PC online games. The E-Commerce segment manages a third-party marketplace through the Shopee mobile app and websites that connect buyers and sellers. The Digital Financial Services segment includes a variety of payment services and loans to individuals and businesses through SeaMoney. Sea was founded by Xiao Dong Li, Gang Ye, and Jing Ye Chen on May 8, 2009 and is headquartered in Singapore.