Levi Strauss & Co. (NYSE:LEVI) and Vera Bradley (NASDAQ:VRA) Head to Head Analysis

Vera Bradley (NASDAQ:VRA) and Levi Strauss & Co. (NYSE:LEVI) are both retail/wholesale companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, earnings, profitability, institutional ownership and dividends.

Analyst Recommendations

This is a summary of recent ratings and price targets for Vera Bradley and Levi Strauss & Co., as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vera Bradley	1	2	0	0	1.67
Levi Strauss & Co.	0	3	12	0	2.80

Levi Strauss & Co. has a consensus price target of $26.69, indicating a potential upside of 46.18%. Given Levi Strauss & Co.’s stronger consensus rating and higher possible upside, analysts clearly believe Levi Strauss & Co. is more favorable than Vera Bradley.

Profitability

This table compares Vera Bradley and Levi Strauss & Co.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vera Bradley	-17.74%	-12.00%	-6.48%
Levi Strauss & Co.	9.20%	25.08%	8.19%

Risk and Volatility

Vera Bradley has a beta of 1.76, suggesting that its share price is 76% more volatile than the S&P 500. Comparatively, Levi Strauss & Co. has a beta of 1.28, suggesting that its share price is 28% more volatile than the S&P 500.

Valuation and Earnings

This table compares Vera Bradley and Levi Strauss & Co.”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vera Bradley	$269.65 million	0.33	-$47.84 million	($1.72)	-1.87
Levi Strauss & Co.	$6.28 billion	1.13	$578.10 million	$1.46	12.51

Levi Strauss & Co. has higher revenue and earnings than Vera Bradley. Vera Bradley is trading at a lower price-to-earnings ratio than Levi Strauss & Co., indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

59.9% of Vera Bradley shares are held by institutional investors. Comparatively, 69.1% of Levi Strauss & Co. shares are held by institutional investors. 12.1% of Vera Bradley shares are held by insiders. Comparatively, 1.1% of Levi Strauss & Co. shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Levi Strauss & Co. beats Vera Bradley on 12 of the 14 factors compared between the two stocks.

About Vera Bradley

Vera Bradley, Inc., together with its subsidiaries, designs, manufactures, and sells women’s handbags, luggage and travel items, fashion and home accessories, and gifts. It operates through three segments: Vera Bradley Direct, Vera Bradley Indirect, and Pura Vida. The company offers bag products, such as totes, crossbodies, satchels, clutches, backpacks, baby bags, and lunch bags; accessories, including ID holders, lanyards, wallets, wristlets, eyewear, scarves, hair accessories, and various technology accessories; bracelets, rings, and necklaces under Pura Vida brand name; and travel products consist of rolling luggage, cosmetics, and travel and packing accessories, as well as travel bags comprising duffel and weekend bags. It also provides home products that include throw blankets, beach towels, and comforters, as well as items, such as mugs and tumblers; apparel/footwear comprising sleepwear, footwear, outerwear, tees and hoodies, and socks; and stationery and merchandising products, as well as freight, licensing, and gift card breakage services. The company sells its Vera Bradley branded products through its full-line and outlet stores in the United States; verabradley.com, an online outlet site; its annual outlet sale in Fort Wayne, Indiana. It sells its Pura Vida branded products through wholesale retailers and Pura Vida websites, including www.puravidabracelets.com, www.puravidabracelets.eu, and www.puravidabracelets.ca; and Vera Bradley Indirect branded products to specialty retail locations, department stores, national accounts, third party e-commerce sites, third-party inventory liquidators, and through licensing agreements. Vera Bradley, Inc. was incorporated in 1982 and is headquartered in Roanoke, Indiana.

About Levi Strauss & Co.

Levi Strauss & Co. engages in the design, marketing, and sale of apparel products. The company offers jeans, casual and dress pants, tops, shorts, skirts, jackets, footwear, and related accessories. It operates through the following geographical segments: Americas, Europe, and Asia. The company was founded by Levi Strauss in 1853 and is headquartered in San Francisco, CA.