iPower (NASDAQ:IPW – Get Free Report) and Vipshop (NYSE:VIPS – Get Free Report) are both consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, earnings, valuation, risk, profitability, analyst recommendations and dividends.
Analyst Ratings
This is a summary of current recommendations and price targets for iPower and Vipshop, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| iPower | 1 | 0 | 0 | 0 | 1.00 |
| Vipshop | 1 | 5 | 3 | 1 | 2.40 |
Vipshop has a consensus target price of $17.16, suggesting a potential upside of 23.78%. Given Vipshop’s stronger consensus rating and higher probable upside, analysts clearly believe Vipshop is more favorable than iPower.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| iPower | -23.43% | -47.96% | -27.32% |
| Vipshop | 9.88% | 12.63% | 7.09% |
Insider & Institutional Ownership
2.7% of iPower shares are owned by institutional investors. Comparatively, 48.8% of Vipshop shares are owned by institutional investors. 0.7% of iPower shares are owned by insiders. Comparatively, 29.5% of Vipshop shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares iPower and Vipshop”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| iPower | $19.96 million | 0.01 | -$11.62 million | ($5,768.10) | -0.00 |
| Vipshop | $105.13 billion | 0.06 | $1.04 billion | $3.02 | 4.59 |
Vipshop has higher revenue and earnings than iPower. iPower is trading at a lower price-to-earnings ratio than Vipshop, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
iPower has a beta of 3.24, suggesting that its share price is 224% more volatile than the S&P 500. Comparatively, Vipshop has a beta of 0.59, suggesting that its share price is 41% less volatile than the S&P 500.
Summary
Vipshop beats iPower on 14 of the 15 factors compared between the two stocks.
About iPower
iPower Inc. operates as an online retailer and supplier of consumer home, garden, and pet products for commercial businesses and individuals in the United States. The company offers grow light systems; advanced heating, ventilation, and air conditioning systems; water pumps, heaters, chillers, and filters; nutrient and fertilizer delivery systems; and various growing media products. It also provides general gardening products, including environmental sensors and controls; and home products, which comprise commercial fans, floor and wall fans, storage and shelving units, and chairs. The company sells its products under the iPower and Simple Deluxe brand names through zenhydro.com, simpledeluxe.com, and various third-party online platforms. The company was formerly known as BZRTH Inc. and changed its name to iPower Inc. in September 2020. iPower Inc. was incorporated in 2018 and is based in Rancho Cucamonga, California.
About Vipshop
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.
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