Oxford Industries (NYSE:OXM) and V.F. (NYSE:VFC) are both consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, risk, valuation, earnings and dividends.
Analyst Recommendations
This is a summary of current ratings and price targets for Oxford Industries and V.F., as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Oxford Industries | 0 | 2 | 3 | 0 | 2.60 |
| V.F. | 1 | 5 | 14 | 0 | 2.65 |
Oxford Industries currently has a consensus price target of $67.80, indicating a potential downside of 15.02%. V.F. has a consensus price target of $88.1765, indicating a potential upside of 8.10%. Given V.F.'s stronger consensus rating and higher possible upside, analysts clearly believe V.F. is more favorable than Oxford Industries.
Risk & Volatility
Oxford Industries has a beta of 1.61, suggesting that its share price is 61% more volatile than the S&P 500. Comparatively, V.F. has a beta of 1.3, suggesting that its share price is 30% more volatile than the S&P 500.
Earnings & Valuation
This table compares Oxford Industries and V.F.'s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Oxford Industries | $1.12 billion | 1.19 | $68.49 million | $4.32 | 18.33 |
| V.F. | $10.49 billion | 3.04 | $679.45 million | $2.68 | 30.37 |
V.F. has higher revenue and earnings than Oxford Industries. Oxford Industries is trading at a lower price-to-earnings ratio than V.F., indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Oxford Industries and V.F.'s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Oxford Industries | -8.26% | -2.98% | -1.36% |
| V.F. | -0.52% | 16.44% | 4.78% |
Dividends
Oxford Industries pays an annual dividend of $1.00 per share and has a dividend yield of 1.3%. V.F. pays an annual dividend of $1.96 per share and has a dividend yield of 2.4%. Oxford Industries pays out 23.1% of its earnings in the form of a dividend. V.F. pays out 73.1% 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. Oxford Industries has raised its dividend for 1 consecutive years and V.F. has raised its dividend for 49 consecutive years. V.F. is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Institutional and Insider Ownership
87.4% of Oxford Industries shares are held by institutional investors. Comparatively, 87.7% of V.F. shares are held by institutional investors. 3.2% of Oxford Industries shares are held by company insiders. Comparatively, 0.8% of V.F. shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Summary
V.F. beats Oxford Industries on 12 of the 17 factors compared between the two stocks.
