Head to Head Contrast: Vipshop Holdings Limited (VIPS) vs. Burlington Stores (NYSE:BURL)

Vipshop Holdings Limited (NYSE: VIPS) and Burlington Stores (NYSE:BURL) are both mid-cap computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, institutional ownership, profitabiliy, valuation, analyst recommendations, risk and earnings.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Vipshop Holdings Limited and Burlington Stores, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vipshop Holdings Limited 1 2 7 0 2.60
Burlington Stores 0 3 12 0 2.80

Vipshop Holdings Limited presently has a consensus price target of $15.80, indicating a potential upside of 39.33%. Burlington Stores has a consensus price target of $104.08, indicating a potential upside of 24.20%. Given Vipshop Holdings Limited’s higher probable upside, equities analysts plainly believe Vipshop Holdings Limited is more favorable than Burlington Stores.

Profitability

This table compares Vipshop Holdings Limited and Burlington Stores’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Vipshop Holdings Limited 3.50% 44.90% 10.78%
Burlington Stores 4.08% -294.39% 9.35%

Volatility and Risk

Vipshop Holdings Limited has a beta of 1.9, meaning that its stock price is 90% more volatile than the S&P 500. Comparatively, Burlington Stores has a beta of 0.51, meaning that its stock price is 49% less volatile than the S&P 500.

Institutional and Insider Ownership

68.5% of Vipshop Holdings Limited shares are owned by institutional investors. 29.5% of Vipshop Holdings Limited shares are owned by insiders. Comparatively, 2.6% of Burlington Stores shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Vipshop Holdings Limited and Burlington Stores’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Vipshop Holdings Limited $8.99 billion 0.74 $581.08 million $0.51 22.24
Burlington Stores $5.65 billion 1.02 $572.65 million $3.23 25.94

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

Summary

Vipshop Holdings Limited beats Burlington Stores on 8 of the 14 factors compared between the two stocks.

Vipshop Holdings Limited 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.

Burlington Stores Company Profile

Burlington Stores, Inc. is a retailer of branded apparel. As of January 28, 2017, the Company operated 592 retail stores, inclusive of an Internet store, in 45 states and Puerto Rico. Its product categories include coats, women, men, juniors, girls, boys, shoes, handbags and accessories, beauty and fragrance, home and toys. The product categories for coats include women’s coats and jackets, men’s coats and jackets, juniors coats and jackets, girls coats and jackets, boy’s coats and jackets, baby girl coats and jackets, and baby boy coats and jackets. The product categories for women include active wear, bottoms, coats and jackets, dresses, tops, scrubs, suit and suit separates, sweaters, swimwear and cover-ups. It also includes accessories, beauty and fragrance, handbags, jewelry, shoes and watches. The product categories for men include accessories, active wear, casual button down shirts, dress shirts, men’s coats jackets, fleece, graphic tees, hoodies and sweatshirts, and jeans.

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