Contrasting Victoria’s Secret & Co. (NYSE:VSCO) and Burberry Group (OTCMKTS:BURBY)

Victoria’s Secret & Co. (NYSE:VSCO) and Burberry Group (OTCMKTS:BURBY) are both retail/wholesale companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, dividends, profitability, earnings, analyst recommendations, institutional ownership and valuation.

Profitability

This table compares Victoria’s Secret & Co. and Burberry Group’s 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%
Burberry Group	N/A	N/A	N/A

Insider & Institutional Ownership

90.3% of Victoria’s Secret & Co. shares are owned by institutional investors. Comparatively, 10.3% of Burberry Group shares are owned by institutional investors. 0.5% of Victoria’s Secret & Co. shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Victoria’s Secret & Co. and Burberry Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Victoria’s Secret & Co.	$6.23 billion	0.24	$165.00 million	$2.00	9.21
Burberry Group	$3.14 billion	1.93	-$95.68 million	N/A	N/A

Victoria’s Secret & Co. has higher revenue and earnings than Burberry Group.

Risk & Volatility

Victoria’s Secret & Co. has a beta of 2.18, meaning that its share price is 118% more volatile than the S&P 500. Comparatively, Burberry Group has a beta of 1.28, meaning that its share price is 28% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for Victoria’s Secret & Co. and Burberry Group, 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
Burberry Group	1	1	1	5	3.25

Victoria’s Secret & Co. presently has a consensus target price of $24.64, suggesting a potential upside of 33.76%. Given Victoria’s Secret & Co.’s higher probable upside, research analysts plainly believe Victoria’s Secret & Co. is more favorable than Burberry Group.

Summary

Victoria’s Secret & Co. beats Burberry Group on 10 of the 13 factors compared between the two stocks.

About Victoria’s Secret & Co.

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.

About Burberry Group

Burberry Group plc, together with its subsidiaries, manufactures, retails, and wholesales luxury goods under the Burberry brand. The company operates in two segments, Retail/Wholesale and Licensing. It provides womenswear, menswear, childrenswear, beauty, eyewear, shoes, and accessories, as well as leather goods, such as bags. The company also licenses third parties to manufacture and distribute products using the Burberry trademarks. It sells its products through Burberry mainline stores, concessions, outlets, digital commerce, Burberry franchisees, department stores, and multi-brand specialty accounts, as well as through Burberry.com website. It operates in the Asia Pacific, Europe, the Middle East, India, Africa, and the Americas. The company was founded in 1856 and is headquartered in London, the United Kingdom.