Contrasting Victoria’s Secret & Co. (NYSE:VSXY) & Petco Health and Wellness (NASDAQ:WOOF)

Petco Health and Wellness (NASDAQ:WOOF) and Victoria’s Secret & Co. (NYSE:VSXY) are both consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, risk, valuation, profitability, dividends and earnings.

Risk & Volatility

Petco Health and Wellness has a beta of 1.59, suggesting that its stock price is 59% more volatile than the S&P 500. Comparatively, Victoria’s Secret & Co. has a beta of 2.01, suggesting that its stock price is 101% more volatile than the S&P 500.

Earnings and Valuation

This table compares Petco Health and Wellness and Victoria’s Secret & Co.”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Petco Health and Wellness	$5.97 billion	0.14	$9.07 million	$0.10	25.10
Victoria’s Secret & Co.	$6.91 billion	1.10	$161.00 million	$3.45	27.65

Victoria’s Secret & Co. has higher revenue and earnings than Petco Health and Wellness. Petco Health and Wellness 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.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Petco Health and Wellness and Victoria’s Secret & Co., as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Petco Health and Wellness	1	6	1	1	2.22
Victoria’s Secret & Co.	0	7	8	0	2.53

Petco Health and Wellness presently has a consensus price target of $3.42, indicating a potential upside of 36.25%. Victoria’s Secret & Co. has a consensus price target of $92.00, indicating a potential downside of 3.54%. Given Petco Health and Wellness’ higher possible upside, research analysts clearly believe Petco Health and Wellness is more favorable than Victoria’s Secret & Co..

Institutional & Insider Ownership

90.3% of Victoria’s Secret & Co. shares are owned by institutional investors. 6.5% of Petco Health and Wellness shares are owned by company insiders. Comparatively, 0.5% of Victoria’s Secret & Co. shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Petco Health and Wellness	0.51%	3.44%	0.78%
Victoria’s Secret & Co.	5.46%	40.43%	7.04%

Summary

Victoria’s Secret & Co. beats Petco Health and Wellness on 12 of the 15 factors compared between the two stocks.

About Petco Health and Wellness

Petco Health and Wellness Company, Inc., operates as a health and wellness company, focuses on enhancing the lives of pets, pet parents, and its Petco partners in the United States, Mexico, and Puerto Rico. The company provides veterinary care, grooming, training, tele-health, and Vital Care and pet health insurance services, as well as veterinary services through Vetco mobile clinics. It also offers pet consumables, supplies, and services through its petco.com, petcoach.co, petinsurancequotes.com, and pupbox.com websites. The company offers its products under the WholeHearted, Reddy, and Well & Good brands. Petco Health and Wellness Company, Inc. was founded in 1965 and is headquartered in San Diego, California.

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.