Comparing Vipshop (VIPS) and Its Competitors

Vipshop (NYSE: VIPS) is one of 20 public companies in the “Catalog & mail-order houses” industry, but how does it weigh in compared to its competitors? We will compare Vipshop to similar businesses based on the strength of its valuation, dividends, institutional ownership, risk, earnings, analyst recommendations and profitability.

Volatility and Risk

Vipshop has a beta of 2.27, indicating that its share price is 127% more volatile than the S&P 500. Comparatively, Vipshop’s competitors have a beta of 1.72, indicating that their average share price is 72% more volatile than the S&P 500.



Insider and Institutional Ownership

48.0% of Vipshop shares are held by institutional investors. Comparatively, 51.8% of shares of all “Catalog & mail-order houses” companies are held by institutional investors. 29.5% of Vipshop shares are held by company insiders. Comparatively, 35.8% of shares of all “Catalog & mail-order houses” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Vipshop and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vipshop 0 2 9 0 2.82
Vipshop Competitors 105 502 1896 48 2.74

Vipshop currently has a consensus price target of $17.60, indicating a potential upside of 2.68%. As a group, “Catalog & mail-order houses” companies have a potential upside of 8.91%. Given Vipshop’s competitors higher possible upside, analysts clearly believe Vipshop has less favorable growth aspects than its competitors.

Valuation and Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
Vipshop $11.21 billion $299.65 million 29.55
Vipshop Competitors $13.26 billion $329.84 million 36.12

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

Profitability

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

Net Margins Return on Equity Return on Assets
Vipshop 2.67% 25.75% 8.08%
Vipshop Competitors -0.91% -1,897.02% -2.41%

Summary

Vipshop competitors beat Vipshop on 7 of the 13 factors compared.

Vipshop Company Profile

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.

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