Vipshop (NYSE:VIPS) and Qurate Retail (NASDAQ:QRTEA) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, risk, valuation, profitability and institutional ownership.
Analyst Recommendations
This is a summary of current recommendations for Vipshop and Qurate Retail, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Vipshop | 1 | 1 | 6 | 0 | 2.63 |
Qurate Retail | 0 | 3 | 2 | 0 | 2.40 |
Vipshop presently has a consensus price target of $28.7778, suggesting a potential upside of 8.97%. Qurate Retail has a consensus price target of $11.25, suggesting a potential downside of 5.98%. Given Vipshop's stronger consensus rating and higher possible upside, analysts clearly believe Vipshop is more favorable than Qurate Retail.
Risk and Volatility
Vipshop has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500. Comparatively, Qurate Retail has a beta of 2.03, suggesting that its share price is 103% more volatile than the S&P 500.
Institutional and Insider Ownership
49.4% of Vipshop shares are held by institutional investors. Comparatively, 87.2% of Qurate Retail shares are held by institutional investors. 29.5% of Vipshop shares are held by company insiders. Comparatively, 9.8% of Qurate Retail shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Vipshop and Qurate Retail's revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Vipshop | $13.36 billion | 1.34 | $576.98 million | $0.92 | 28.71 |
Qurate Retail | $13.46 billion | 0.36 | $-456,000,000.00 | $1.93 | 6.20 |
Vipshop has higher earnings, but lower revenue than Qurate Retail. Qurate Retail is trading at a lower price-to-earnings ratio than Vipshop, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Vipshop and Qurate Retail's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Vipshop | 5.16% | 19.76% | 9.85% |
Qurate Retail | 4.89% | 18.08% | 5.12% |
Summary
Vipshop beats Qurate Retail on 10 of the 14 factors compared between the two stocks.