Vipshop (VIPS) & Its Peers Head to Head Contrast
by Mitch Edgeman · The Markets DailyVipshop (NYSE:VIPS – Get Free Report) is one of 142 publicly-traded companies in the “Broadline Retail” industry, but how does it compare to its competitors? We will compare Vipshop to related businesses based on the strength of its valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.
Earnings and Valuation
This table compares Vipshop and its competitors top-line revenue, earnings per share and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| Vipshop | $15.15 billion | $1.04 billion | 4.27 |
| Vipshop Competitors | $24.25 billion | $1.71 billion | 15.49 |
Vipshop’s competitors have higher revenue and earnings than Vipshop. Vipshop is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Vipshop and its competitors, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Vipshop | 1 | 5 | 3 | 1 | 2.40 |
| Vipshop Competitors | 1404 | 5405 | 10877 | 309 | 2.56 |
Vipshop currently has a consensus target price of $17.16, indicating a potential upside of 33.10%. As a group, “Broadline Retail” companies have a potential upside of 20.84%. Given Vipshop’s higher possible upside, analysts clearly believe Vipshop is more favorable than its competitors.
Institutional & Insider Ownership
48.8% of Vipshop shares are owned by institutional investors. Comparatively, 44.6% of shares of all “Broadline Retail” companies are owned by institutional investors. 29.5% of Vipshop shares are owned by company insiders. Comparatively, 23.6% of shares of all “Broadline Retail” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Profitability
This table compares Vipshop and its competitors’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Vipshop | 9.88% | 12.63% | 7.09% |
| Vipshop Competitors | -3.00% | -38.43% | -2.57% |
Risk & Volatility
Vipshop has a beta of 0.57, indicating that its share price is 43% less volatile than the S&P 500. Comparatively, Vipshop’s competitors have a beta of 1.69, indicating that their average share price is 69% more volatile than the S&P 500.
Dividends
Vipshop pays an annual dividend of $0.60 per share and has a dividend yield of 4.7%. Vipshop pays out 19.9% of its earnings in the form of a dividend. As a group, “Broadline Retail” companies pay a dividend yield of 17.9% and pay out 73.0% of their earnings in the form of a dividend.
Summary
Vipshop beats its competitors on 8 of the 15 factors compared.
Vipshop Company Profile
Vipshop Holdings Limited operates online platforms in the People's Republic of China. It operates in Vip.com, Shan Shan Outlets, and Others segments. The company offers womenswear, menswear, sportswear and sporting goods, shoes and bags, accessories, baby and children products, skincare and cosmetics, home goods and other lifestyle products, and supermarket products. It also provides internet finance services, including consumer and supplier financing. In addition, the company engages in warehousing, retail business, product procurement, and software development and information technology support activities. The company provides branded products through its vip.com and vipshop.com online platforms, as well as through retail stores. Vipshop Holdings Limited was founded in 2008 and is headquartered in Guangzhou, the People's Republic of China.