Burlington Stores (NYSE: BURL) and Vipshop Holdings Limited (NYSE:VIPS) are both mid-cap retail/wholesale companies, but which is the better business? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, profitabiliy, valuation, earnings and analyst recommendations.

Profitability

This table compares Burlington Stores and Vipshop Holdings Limited’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Burlington Stores 4.08% -294.39% 9.35%
Vipshop Holdings Limited 3.50% 44.90% 10.78%

Institutional and Insider Ownership

68.5% of Vipshop Holdings Limited shares are held by institutional investors. 2.6% of Burlington Stores shares are held by company insiders. Comparatively, 29.5% of Vipshop Holdings Limited shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

Burlington Stores has a beta of 0.51, indicating that its share price is 49% less volatile than the S&P 500. Comparatively, Vipshop Holdings Limited has a beta of 1.9, indicating that its share price is 90% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings for Burlington Stores and Vipshop Holdings Limited, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Burlington Stores 0 3 12 0 2.80
Vipshop Holdings Limited 1 2 7 0 2.60

Burlington Stores currently has a consensus target price of $104.08, indicating a potential upside of 21.71%. Vipshop Holdings Limited has a consensus target price of $15.80, indicating a potential upside of 33.56%. Given Vipshop Holdings Limited’s higher possible upside, analysts plainly believe Vipshop Holdings Limited is more favorable than Burlington Stores.

Earnings & Valuation

This table compares Burlington Stores and Vipshop Holdings Limited’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Burlington Stores $5.65 billion 1.05 $572.65 million $3.23 26.47
Vipshop Holdings Limited $8.93 billion 0.78 $577.22 million $0.51 23.20

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

Summary

Vipshop Holdings Limited beats Burlington Stores on 8 of the 14 factors compared between the two stocks.

About Burlington Stores

Burlington Stores, Inc. is a retailer of branded apparel. As of January 28, 2017, the Company operated 592 retail stores, inclusive of an Internet store, in 45 states and Puerto Rico. Its product categories include coats, women, men, juniors, girls, boys, shoes, handbags and accessories, beauty and fragrance, home and toys. The product categories for coats include women’s coats and jackets, men’s coats and jackets, juniors coats and jackets, girls coats and jackets, boy’s coats and jackets, baby girl coats and jackets, and baby boy coats and jackets. The product categories for women include active wear, bottoms, coats and jackets, dresses, tops, scrubs, suit and suit separates, sweaters, swimwear and cover-ups. It also includes accessories, beauty and fragrance, handbags, jewelry, shoes and watches. The product categories for men include accessories, active wear, casual button down shirts, dress shirts, men’s coats jackets, fleece, graphic tees, hoodies and sweatshirts, and jeans.

About Vipshop Holdings Limited

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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