Head-To-Head Contrast: Tilly’s (NYSE:TLYS) vs. Victoria’s Secret & Co. (NYSE:VSCO)

Tilly’s (NYSE:TLYS) and Victoria’s Secret & Co. (NYSE:VSCO) are both retail/wholesale companies, but which is the better stock? We will compare the two companies based on the strength of their risk, analyst recommendations, dividends, institutional ownership, earnings, valuation and profitability.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tilly’s	1	3	0	0	1.75
Victoria’s Secret & Co.	0	5	7	1	2.69

Tilly’s presently has a consensus target price of $2.00, suggesting a potential downside of 48.39%. Victoria’s Secret & Co. has a consensus target price of $61.80, suggesting a potential upside of 32.92%. Given Victoria’s Secret & Co.’s stronger consensus rating and higher possible upside, analysts plainly believe Victoria’s Secret & Co. is more favorable than Tilly’s.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Tilly’s	-3.15%	-21.26%	-5.34%
Victoria’s Secret & Co.	2.45%	33.55%	5.14%

Institutional & Insider Ownership

76.4% of Tilly’s shares are owned by institutional investors. Comparatively, 90.3% of Victoria’s Secret & Co. shares are owned by institutional investors. 2.8% of Tilly’s 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 endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Tilly’s has a beta of 0.1, meaning that its stock price is 90% less volatile than the S&P 500. Comparatively, Victoria’s Secret & Co. has a beta of 2.18, meaning that its stock price is 118% more volatile than the S&P 500.

Earnings & Valuation

This table compares Tilly’s 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
Tilly’s	$553.59 million	0.21	-$17.45 million	($0.59)	-6.57
Victoria’s Secret & Co.	$6.55 billion	0.56	$161.00 million	$1.86	25.00

Victoria’s Secret & Co. has higher revenue and earnings than Tilly’s. Tilly’s 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.

Summary

Victoria’s Secret & Co. beats Tilly’s on 14 of the 15 factors compared between the two stocks.

About Tilly’s

Tilly’s, Inc. engages in the retail of casual apparel, footwear, and accessories. Its stores are located in retail centers, including malls, lifestyle centers, power centers, community centers, outlet centers, and street-front locations. The company was founded by Hezy Shaked and Tilly Levine in 1982 and is headquartered in Irvine, CA.

About Victoria’s Secret & Co.

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.