Analyzing Victoria’s Secret & Co. (VSCO) & Its Peers

Victoria’s Secret & Co. (NYSE:VSCO) is one of 60 publicly-traded companies in the “RETAIL – APP/SHOE” industry, but how does it contrast to its peers? We will compare Victoria’s Secret & Co. to similar businesses based on the strength of its dividends, earnings, valuation, profitability, analyst recommendations, risk and institutional ownership.

Analyst Ratings

This is a breakdown of current ratings and target prices for Victoria’s Secret & Co. and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Victoria’s Secret & Co.	3	5	4	0	2.08
Victoria’s Secret & Co. Competitors	872	4916	5301	112	2.42

Victoria’s Secret & Co. presently has a consensus target price of $24.64, indicating a potential upside of 19.77%. As a group, “RETAIL – APP/SHOE” companies have a potential upside of 20.60%. Given Victoria’s Secret & Co.’s peers stronger consensus rating and higher probable upside, analysts plainly believe Victoria’s Secret & Co. has less favorable growth aspects than its peers.

Valuation and Earnings

This table compares Victoria’s Secret & Co. and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Victoria’s Secret & Co.	$6.23 billion	$165.00 million	10.29
Victoria’s Secret & Co. Competitors	$5.94 billion	$362.55 million	56.70

Victoria’s Secret & Co. has higher revenue, but lower earnings than its peers. Victoria’s Secret & Co. is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Victoria’s Secret & Co. and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Victoria’s Secret & Co.	2.69%	37.76%	4.62%
Victoria’s Secret & Co. Competitors	-6.38%	2.18%	1.42%

Volatility & Risk

Victoria’s Secret & Co. has a beta of 2.18, suggesting that its share price is 118% more volatile than the S&P 500. Comparatively, Victoria’s Secret & Co.’s peers have a beta of 1.27, suggesting that their average share price is 27% more volatile than the S&P 500.

Institutional & Insider Ownership

90.3% of Victoria’s Secret & Co. shares are owned by institutional investors. Comparatively, 66.4% of shares of all “RETAIL – APP/SHOE” companies are owned by institutional investors. 0.5% of Victoria’s Secret & Co. shares are owned by company insiders. Comparatively, 19.8% of shares of all “RETAIL – APP/SHOE” companies are owned 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.

Summary

Victoria’s Secret & Co. peers beat Victoria’s Secret & Co. on 7 of the 13 factors compared.

Victoria’s Secret & Co. Company Profile

Victoria’s Secret & Co. operates as a lingerie, clothing and beauty retailer. It offers bras, panties, lingerie, pajamas, sleep, sport and swim apparel, and beauty products. The company was founded in 1963 and is headquartered in Reynoldsburg, OH.