Critical Analysis: VF (VFC) & Oxford Industries (OXM)

VF (NYSE: VFC) and Oxford Industries (NYSE:OXM) are both consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, profitability, dividends, valuation, earnings, risk and analyst recommendations.

Analyst Recommendations

This is a breakdown of current recommendations for VF and Oxford Industries, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
VF 1 12 9 0 2.36
Oxford Industries 0 2 5 0 2.71



VF currently has a consensus price target of $76.81, suggesting a potential downside of 0.63%. Oxford Industries has a consensus price target of $82.00, suggesting a potential upside of 5.85%. Given Oxford Industries’ stronger consensus rating and higher probable upside, analysts plainly believe Oxford Industries is more favorable than VF.

Earnings & Valuation

This table compares VF and Oxford Industries’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
VF $11.81 billion 2.60 $614.92 million $2.98 25.94
Oxford Industries $1.09 billion 1.20 $65.09 million $3.66 21.17

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

Profitability

This table compares VF and Oxford Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
VF 5.08% 31.49% 12.58%
Oxford Industries 5.99% 15.02% 8.98%

Volatility and Risk

VF has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500. Comparatively, Oxford Industries has a beta of 0.35, meaning that its share price is 65% less volatile than the S&P 500.

Institutional & Insider Ownership

87.9% of Oxford Industries shares are held by institutional investors. 1.7% of VF shares are held by insiders. Comparatively, 3.3% of Oxford Industries shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Dividends

VF pays an annual dividend of $1.84 per share and has a dividend yield of 2.4%. Oxford Industries pays an annual dividend of $1.08 per share and has a dividend yield of 1.4%. VF pays out 61.7% of its earnings in the form of a dividend. Oxford Industries pays out 29.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. VF has raised its dividend for 45 consecutive years and Oxford Industries has raised its dividend for 8 consecutive years. VF is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

VF beats Oxford Industries on 10 of the 17 factors compared between the two stocks.

About VF

V.F. Corporation engages in the design, production, procurement, marketing, and distribution of branded lifestyle apparel, footwear, and related products for men, women, and children in the Americas, Europe, and the Asia Pacific. It operates through four segments: Outdoor & Action Sports, Jeanswear, Imagewear, and Other. The company offers outdoor apparel, youth culture/action sports-inspired footwear, footwear and equipment, handbags, luggage, backpacks, totes, accessories, backpacks, surfing-inspired footwear, merino wool socks, and travel accessories under The North Face, Vans, Timberland, Kipling, Napapijri, JanSport, Reef, Smartwool, Eastpak, and Eagle Creek brands. It also provides denim, casual apparel, footwear, and accessories under the Wrangler, Lee, Riders by Lee, Rustler, and Rock & Republic brands. In addition, the company offers occupational, protective occupational, work and work-inspired lifestyle, and outdoor work and hunt apparel, as well as protective work and lifestyle footwear under the Red Kap, Bulwark, Horace Small, Dickies, Workrite, Kodiak, Terra, and Walls brands. It sells its products primarily to specialty stores, department stores, national chains, and mass merchants, as well as sells through direct-to-consumer operations, concession retail stores, and e-commerce sites. V.F. Corporation was founded in 1899 and is headquartered in Greensboro, North Carolina.

About Oxford Industries

Oxford Industries, Inc., an apparel company, designs, sources, markets, and distributes products of company owned brands, and licensed and private labels apparel products worldwide. The company offers men's and women's sportswear and related products under the Tommy Bahama brand; and women's and girl's dresses and sportswear, scarves, bags, jewelry, and belts, as well as footwear and children's apparel under the Lilly Pulitzer brand. It also provides branded and private label men's apparel, including tailored clothing, casual pants, and sportswear, as well as apparel under licensed brands, such as the Kenneth Cole, Dockers, Geoffrey Beene, Nick Graham, and Andrew Fezza. In addition, the company licenses Tommy Bahama names for various products, such as men's and women's headwear, watches, outerwear, belts, leather goods, gifts, footwear, handbags, mattresses and box springs, men's socks, luggage, bedding and bath linens, sleepwear, rugs, table top accessories, shampoos, soaps, bath amenities, fragrances, and fabrics, as well as indoor and outdoor furniture, and related products. Oxford Industries, Inc. offers its products through its retail stores and e-commerce sites, department stores, national chains, warehouse clubs, specialty stores, specialty catalogs, and Internet retailers. As of January 28, 2017, the company operated 168 Tommy Bahama stores, including 111 full-price retail stores, 17 retail-restaurant locations, and 40 outlet stores. Oxford Industries, Inc. was founded in 1942 and is headquartered in Atlanta, Georgia.

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