Financial Survey: Vipshop (VIPS) versus Its Competitors

Vipshop (NYSE:VIPS) is one of 142 publicly-traded companies in the “Broadline Retail” industry, but how does it compare to its rivals? We will compare Vipshop to related businesses based on the strength of its dividends, institutional ownership, earnings, analyst recommendations, risk, valuation and profitability.

Dividends

Vipshop pays an annual dividend of $0.60 per share and has a dividend yield of 4.3%. Vipshop pays out 19.9% of its earnings in the form of a dividend. As a group, “Broadline Retail” companies pay a dividend yield of 31.3% and pay out 11.5% of their earnings in the form of a dividend. Vipshop lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Vipshop	$15.15 billion	$1.04 billion	4.59
Vipshop Competitors	$22.26 billion	$1.71 billion	15.69

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Vipshop	9.88%	12.63%	7.09%
Vipshop Competitors	-3.01%	-38.47%	-2.59%

Risk and Volatility

Vipshop has a beta of 0.59, suggesting that its stock price is 41% less volatile than the S&P 500. Comparatively, Vipshop’s rivals have a beta of 1.73, suggesting that their average stock price is 73% more volatile than the S&P 500.

Insider & Institutional Ownership

48.8% of Vipshop shares are held by institutional investors. Comparatively, 44.5% of shares of all “Broadline Retail” companies are held by institutional investors. 29.5% of Vipshop shares are held by company insiders. Comparatively, 23.6% of shares of all “Broadline Retail” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vipshop	1	5	3	1	2.40
Vipshop Competitors	1407	5411	10897	311	2.56

Vipshop presently has a consensus price target of $17.16, indicating a potential upside of 23.78%. As a group, “Broadline Retail” companies have a potential upside of 21.73%. Given Vipshop’s higher possible upside, research analysts plainly believe Vipshop is more favorable than its rivals.

Summary

Vipshop rivals beat Vipshop on 8 of the 15 factors compared.

Vipshop Company Profile

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.