Floor & Decor (NYSE:FND) vs. Victoria’s Secret & Co. (NYSE:VSXY) Financial Analysis

Floor & Decor (NYSE:FND – Get Free Report) and Victoria’s Secret & Co. (NYSE:VSXY – Get Free Report) are both mid-cap consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, risk, analyst recommendations, valuation, institutional ownership, profitability and earnings.

Volatility and Risk

Floor & Decor has a beta of 1.6, meaning that its stock price is 60% more volatile than the S&P 500. Comparatively, Victoria’s Secret & Co. has a beta of 2.01, meaning that its stock price is 101% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Floor & Decor and Victoria’s Secret & Co., as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Floor & Decor 3 12 5 0 2.10
Victoria’s Secret & Co. 0 7 7 0 2.50

Floor & Decor presently has a consensus price target of $59.16, suggesting a potential upside of 29.99%. Victoria’s Secret & Co. has a consensus price target of $89.91, suggesting a potential upside of 8.36%. Given Floor & Decor’s higher probable upside, research analysts clearly believe Floor & Decor is more favorable than Victoria’s Secret & Co..

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Floor & Decor $4.68 billion 1.03 $208.65 million $2.15 21.17
Victoria’s Secret & Co. $6.55 billion 1.01 $161.00 million $3.45 24.05

Floor & Decor has higher earnings, but lower revenue than Victoria’s Secret & Co.. Floor & Decor 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.

Profitability

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

Net Margins Return on Equity Return on Assets
Floor & Decor 4.93% 8.20% 3.58%
Victoria’s Secret & Co. 5.46% 40.43% 7.04%

Institutional & Insider Ownership

90.3% of Victoria’s Secret & Co. shares are owned by institutional investors. 1.8% of Floor & Decor shares are owned by insiders. Comparatively, 0.5% of Victoria’s Secret & Co. shares are owned by 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.

Summary

Victoria’s Secret & Co. beats Floor & Decor on 10 of the 14 factors compared between the two stocks.

About Floor & Decor

(Get Free Report)

Floor & Decor Holdings, Inc. engages in the retail of hard surface flooring and related accessories. It provides wood, stone, and flooring products. Its products include vinyl, laminate, and tiles with materials installation for living rooms, kitchen, bathrooms, and walls. The company was founded by George Vincent West in 2000 and is headquartered in Atlanta, GA.

About Victoria’s Secret & Co.

(Get Free Report)

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.

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