Financial Contrast: Target Corporation (TGT) vs. Vipshop Holdings Ltd – (VIPS)

Target Corporation (NYSE: TGT) and Vipshop Holdings Ltd – (NYSE:VIPS) are both mid-cap retail/wholesale companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, earnings, profitability, valuation and risk.

Volatility & Risk

Target Corporation has a beta of 0.6, meaning that its stock price is 40% less volatile than the S&P 500. Comparatively, Vipshop Holdings Ltd – has a beta of 1.95, meaning that its stock price is 95% more volatile than the S&P 500.

Institutional & Insider Ownership

83.3% of Target Corporation shares are held by institutional investors. Comparatively, 56.4% of Vipshop Holdings Ltd – shares are held by institutional investors. 0.2% of Target Corporation shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Target Corporation and Vipshop Holdings Ltd -‘s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Target Corporation $69.58 billion 0.45 $7.14 billion $4.96 11.67
Vipshop Holdings Ltd – $9.65 billion 0.60 $595.67 million $0.49 20.04

Target Corporation has higher revenue and earnings than Vipshop Holdings Ltd -. Target Corporation is trading at a lower price-to-earnings ratio than Vipshop Holdings Ltd -, indicating that it is currently the more affordable of the two stocks.

Dividends

Target Corporation pays an annual dividend of $2.48 per share and has a dividend yield of 4.3%. Vipshop Holdings Ltd – does not pay a dividend. Target Corporation pays out 50.0% of its earnings in the form of a dividend. Vipshop Holdings Ltd – has raised its dividend for 49 consecutive years.

Analyst Ratings

This is a summary of recent ratings and price targets for Target Corporation and Vipshop Holdings Ltd -, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Target Corporation 5 13 5 0 2.00
Vipshop Holdings Ltd – 2 3 7 0 2.42

Target Corporation currently has a consensus target price of $62.05, suggesting a potential upside of 7.18%. Vipshop Holdings Ltd – has a consensus target price of $14.44, suggesting a potential upside of 47.05%. Given Vipshop Holdings Ltd -‘s stronger consensus rating and higher possible upside, analysts plainly believe Vipshop Holdings Ltd – is more favorable than Target Corporation.

Profitability

This table compares Target Corporation and Vipshop Holdings Ltd -‘s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Target Corporation 3.99% 25.06% 7.34%
Vipshop Holdings Ltd – 2.16% 22.68% 6.09%

Summary

Target Corporation beats Vipshop Holdings Ltd – on 9 of the 17 factors compared between the two stocks.

About Target Corporation

Target Corporation (Target) is a general merchandise retailer selling products through its stores and digital channels. Its general merchandise stores offer an edited food assortment, including perishables, dry grocery, dairy and frozen items. Its digital channels include a range of general merchandise, including a range of items found in its stores, along with an assortment, such as additional sizes and colors sold only online. Its owned brands include Archer Farms, Market Pantry, Sutton & Dodge, Art Class, Merona, Threshold, Ava & Viv, Pillowfort, Room Essentials, Wine Cube, Cat & Jack, Simply Balanced and Wondershop. Its exclusive brands include C9 by Champion, Hand Made Modern, Mossimo, DENIZEN from Levi’s, Nate Berkus for Target, Fieldcrest, Kid Made Modern, Genuine Kids from OshKosh and Liz Lange for Target. As of January 28, 2017, the Company had 1,802 stores across the United States, including 1,535 owned stores, 107 leased stores and 160 owned buildings on leased land.

About Vipshop Holdings Ltd –

Vipshop Holdings Limited is a holding company. The Company is an online discount retailer for brands in China. The Company offers branded products to consumers in China through flash sales mainly on its vip.com Website. The Company’s segment is sales, product distribution and offering of goods on its online platforms. The Company conducts its business through its subsidiaries and consolidated affiliated entities in China. Through its flash sales model, the Company sells limited quantities of discounted branded products online for limited periods of time. The Company offers diversified product offerings from over 17,000 domestic and international brands, including apparel for women, men and children, fashion goods, cosmetics, home goods and other lifestyle products. The Company offers a range of products and services for consumers through lefeng.com, specializing in branded cosmetics, apparel, healthcare products, food and other consumer products.

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