Head to Head Analysis: Insight Enterprises (NSIT) & Vipshop (VIPS)

Insight Enterprises (NASDAQ: NSIT) and Vipshop (NYSE:VIPS) are both retail/wholesale companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, valuation, analyst recommendations, risk, institutional ownership and dividends.

Analyst Ratings

This is a breakdown of recent ratings for Insight Enterprises and Vipshop, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Insight Enterprises 1 1 1 0 2.00
Vipshop 0 3 9 0 2.75



Insight Enterprises currently has a consensus price target of $49.00, suggesting a potential upside of 41.70%. Vipshop has a consensus price target of $16.88, suggesting a potential upside of 4.80%. Given Insight Enterprises’ higher possible upside, equities research analysts plainly believe Insight Enterprises is more favorable than Vipshop.

Institutional and Insider Ownership

99.0% of Insight Enterprises shares are owned by institutional investors. Comparatively, 48.0% of Vipshop shares are owned by institutional investors. 1.4% of Insight Enterprises shares are owned by insiders. Comparatively, 29.5% of Vipshop shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

Insight Enterprises has a beta of 1.36, meaning that its stock price is 36% more volatile than the S&P 500. Comparatively, Vipshop has a beta of 2.27, meaning that its stock price is 127% more volatile than the S&P 500.

Profitability

This table compares Insight Enterprises and Vipshop’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Insight Enterprises 1.35% 14.73% 4.44%
Vipshop 2.67% 25.75% 8.08%

Valuation & Earnings

This table compares Insight Enterprises and Vipshop’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Insight Enterprises $6.70 billion 0.19 $90.68 million $3.24 10.67
Vipshop $11.21 billion 0.94 $299.65 million $0.58 27.78

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

Summary

Vipshop beats Insight Enterprises on 11 of the 14 factors compared between the two stocks.

About Insight Enterprises

Insight Enterprises, Inc. is engaged in providing information technology (IT) hardware, software, and cloud and service solutions to business, government, healthcare and educational clients. The Company operates through three segments: North America, EMEA and APAC. North America comprises the United States and Canada; EMEA comprises Europe, the Middle East and Africa, and APAC comprises Asia Pacific. The Company consults, designs, implements and manages integrated IT solutions for its customers. Its offerings in North America and select countries in Europe, the Middle East and Africa include a suite of IT hardware, software and services solutions. Its offerings in the remainder of EMEA and APAC segments are software and select software-related services. Its cloud management platform serves as a marketplace for its clients to buy and manage their cloud subscriptions with options that manage their software-as-a-service and infrastructure-as-a-service management capabilities.

About Vipshop

Vipshop Holdings Limited, through its subsidiaries, operates as an online discount retailer for various brands in the People's Republic of China. It offers a range of branded products, including women's apparel, such as casual wear, jeans, dresses, outerwear, swimsuits, lingerie, pajamas, and maternity clothes; men's apparel comprising casual and smart-casual T-shirts, polo shirts, jackets, pants, and underwear; women and men shoes for casual and formal occasions; and accessories consisting of belts, fashionable jewelry, watches, and glasses for women and men. The company also provides handbags, such as purses, satchels, duffel bags, and wallets; apparel, gear and accessories, furnishings and decor, toys, and games for boys, girls, infants, and toddlers of all age groups; sports apparel, and sports gear, and footwear for tennis, badminton, soccer, and swimming; and skin care and cosmetic products, including cleansers, lotions, face and body creams, face masks, sunscreen, foundations, lipsticks, eye shadows, and nail polish. In addition, it offers home furnishing products comprising bedding and bath products, home decors, and dining and tabletop items; small household appliances; designer apparel, footwear and accessories; and snacks, health supplements, and occasion-based gifts, such as chocolates, moon-cakes, and tea. Further, the company provides consumer financing, supply chain financing, and wealth management services. The company provides its branded products through its vipshop.com, vip.com, and lefeng.com Websites, as well as through its cellular phone application. Vipshop Holdings Limited was founded in 2008 and is headquartered in Guangzhou, the People's Republic of China.

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