Analyzing Vipshop (VIPS) & Netshoes (CAYMAN) (NETS)

Vipshop (NYSE: VIPS) and Netshoes (CAYMAN) (NYSE:NETS) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, analyst recommendations, profitability, institutional ownership, risk, dividends and earnings.

Profitability

This table compares Vipshop and Netshoes (CAYMAN)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Vipshop 2.67% 25.75% 8.08%
Netshoes (CAYMAN) -9.00% -39.23% -12.29%



Earnings and Valuation

This table compares Vipshop and Netshoes (CAYMAN)’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Vipshop $11.21 billion 0.98 $299.65 million $0.58 28.88
Netshoes (CAYMAN) $180.65 million 0.93 -$51.31 million ($1.80) -3.01

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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Vipshop and Netshoes (CAYMAN), as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vipshop 0 2 9 0 2.82
Netshoes (CAYMAN) 0 2 2 0 2.50

Vipshop currently has a consensus price target of $17.60, suggesting a potential upside of 5.07%. Netshoes (CAYMAN) has a consensus price target of $21.88, suggesting a potential upside of 303.60%. Given Netshoes (CAYMAN)’s higher probable upside, analysts plainly believe Netshoes (CAYMAN) is more favorable than Vipshop.

Insider & Institutional Ownership

48.0% of Vipshop shares are held by institutional investors. Comparatively, 61.8% of Netshoes (CAYMAN) shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Vipshop beats Netshoes (CAYMAN) on 10 of the 12 factors compared between the two stocks.

About Vipshop

Vipshop Holdings Limited is a holding company. The Company is an online discount retailer for brands in China. The Company offers branded products to consumers in China through flash sales mainly on its vip.com Website. The Company’s segment is sales, product distribution and offering of goods on its online platforms. The Company conducts its business through its subsidiaries and consolidated affiliated entities in China. Through its flash sales model, the Company sells limited quantities of discounted branded products online for limited periods of time. The Company offers diversified product offerings from over 17,000 domestic and international brands, including apparel for women, men and children, fashion goods, cosmetics, home goods and other lifestyle products. The Company offers a range of products and services for consumers through lefeng.com, specializing in branded cosmetics, apparel, healthcare products, food and other consumer products.

About Netshoes (CAYMAN)

Netshoes (Cayman) Limited, through its subsidiaries, operates as a sports and lifestyle online retailer in Latin America. It offers various products, including athletic shoes, jerseys, apparels, accessories, and sporting equipment of international, local, and private brands, as well as fashion. The company operates through its ecommerce Websites, such as www.netshoes.com and www.zattini.com. Netshoes (Cayman) Limited was incorporated in 2011 and is headquartered in São Paulo, Brazil.

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