Esprit (OTCMKTS:ESPGY) and Vera Bradley (NASDAQ:VRA) Critical Review

Vera Bradley (NASDAQ:VRA) and Esprit (OTCMKTS:ESPGY) are both small-cap retail/wholesale companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, earnings, profitability, risk and valuation.

Institutional and Insider Ownership

59.9% of Vera Bradley shares are owned by institutional investors. 14.3% of Vera Bradley shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Vera Bradley and Esprit’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vera Bradley	-7.02%	-6.66%	-3.65%
Esprit	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent recommendations for Vera Bradley and Esprit, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vera Bradley	1	2	0	0	1.67
Esprit	0	0	0	0	0.00

Valuation & Earnings

This table compares Vera Bradley and Esprit”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	0.37	-$47.84 million	($0.69)	-5.03
Esprit	$5.38 million	0.39	-$157.30 million	N/A	N/A

Vera Bradley has higher revenue and earnings than Esprit.

Summary

Vera Bradley beats Esprit on 5 of the 9 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 Esprit

Esprit Holdings Limited, an investment holding company, engages in retail and wholesale distribution, and licensing of fashion and non-apparel products. It operates through Europe; Asia; E-shop; and Corporate Services, Sourcing, Licensing and Others segments. The company offers apparel and accessories under the ESPRIT brand name through retail stores and e-commerce platforms. It is also involved in the sourcing, purchasing, distributing, and sale of merchandise; provision of financial and treasury services, as well as logistic services comprising customs dealing and quality control; design and image directions; and conceptualization and development of global uniform image businesses. Esprit Holdings Limited was founded in 1968 and is headquartered in North Point, Hong Kong.