Financial Contrast: Victoria’s Secret & Co. (NYSE:VSCO) versus Capri (NYSE:CPRI)

Capri (NYSE:CPRI) and Victoria’s Secret & Co. (NYSE:VSCO) are both mid-cap retail/wholesale companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, risk, profitability, institutional ownership, analyst recommendations, earnings and valuation.

Risk & Volatility

Capri has a beta of 1.45, suggesting that its share price is 45% more volatile than the S&P 500. Comparatively, Victoria’s Secret & Co. has a beta of 2.21, suggesting that its share price is 121% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Capri	-13.57%	-430.23%	-8.70%
Victoria’s Secret & Co.	2.67%	33.47%	4.82%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Capri and Victoria’s Secret & Co., as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Capri	1	8	6	1	2.44
Victoria’s Secret & Co.	0	6	7	1	2.64

Capri presently has a consensus price target of $26.21, suggesting a potential upside of 29.65%. Victoria’s Secret & Co. has a consensus price target of $55.20, suggesting a potential downside of 11.52%. Given Capri’s higher probable upside, equities analysts clearly believe Capri is more favorable than Victoria’s Secret & Co..

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Capri	$4.33 billion	0.56	-$1.18 billion	($4.26)	-4.75
Victoria’s Secret & Co.	$6.23 billion	0.80	$165.00 million	$2.05	30.43

Victoria’s Secret & Co. has higher revenue and earnings than Capri. Capri is trading at a lower price-to-earnings ratio than Victoria’s Secret & Co., indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

84.3% of Capri shares are held by institutional investors. Comparatively, 90.3% of Victoria’s Secret & Co. shares are held by institutional investors. 2.3% of Capri shares are held by insiders. Comparatively, 0.5% of Victoria’s Secret & Co. shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Victoria’s Secret & Co. beats Capri on 12 of the 14 factors compared between the two stocks.

About Capri

Capri Holdings Limited designs, markets, distributes, and retails branded women's and men's apparel, footwear, and accessories in the United States, Canada, Latin America, Europe, the Middle East, Africa, and Asia. It operates through three segments: Versace, Jimmy Choo, and Michael Kors. The company offers ready-to-wear, accessories, footwear, handbags, scarves and belts, small leather goods, eyewear, watches, jewelry, fragrances, and home furnishings through a distribution network, including boutiques, department, and specialty stores, as well as through e-commerce sites. It also engages in licensing agreements to the manufacture and sale of watches, jewelry, eyewear, and fragrances. The company was formerly known as Michael Kors Holdings Limited and changed its name to Capri Holdings Limited in December 2018. Capri Holdings Limited was founded in 1981 and is headquartered in London, the United Kingdom.

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.