Vipshop (NYSE:VIPS – Get Free Report) and iPower (NASDAQ:IPW – Get Free Report) are both consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, institutional ownership, risk, dividends, analyst recommendations, profitability and earnings.
Analyst Ratings
This is a summary of current recommendations for Vipshop and iPower, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Vipshop | 1 | 5 | 3 | 1 | 2.40 |
| iPower | 1 | 0 | 0 | 0 | 1.00 |
Vipshop presently has a consensus target price of $17.16, suggesting a potential upside of 32.74%. Given Vipshop’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Vipshop is more favorable than iPower.
Insider & Institutional Ownership
48.8% of Vipshop shares are owned by institutional investors. Comparatively, 2.7% of iPower shares are owned by institutional investors. 29.5% of Vipshop shares are owned by company insiders. Comparatively, 0.7% of iPower shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares Vipshop and iPower”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Vipshop | $15.15 billion | 0.41 | $1.04 billion | $3.02 | 4.28 |
| iPower | $19.96 million | 0.01 | -$11.62 million | ($5,768.10) | -0.00 |
Vipshop has higher revenue and earnings than iPower. iPower is trading at a lower price-to-earnings ratio than Vipshop, indicating that it is currently the more affordable of the two stocks.
Dividends
Vipshop pays an annual dividend of $0.60 per share and has a dividend yield of 4.6%. iPower pays an annual dividend of $0.71 per share and has a dividend yield of 55.8%. Vipshop pays out 19.9% of its earnings in the form of a dividend. iPower pays out -0.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. iPower is clearly the better dividend stock, given its higher yield and lower payout ratio.
Volatility & Risk
Vipshop has a beta of 0.59, meaning that its share price is 41% less volatile than the S&P 500. Comparatively, iPower has a beta of 3.24, meaning that its share price is 224% more volatile than the S&P 500.
Profitability
This table compares Vipshop and iPower’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Vipshop | 9.88% | 12.63% | 7.09% |
| iPower | -23.43% | -47.96% | -27.32% |
Summary
Vipshop beats iPower on 14 of the 17 factors compared between the two stocks.
About Vipshop
Vipshop Holdings Ltd. operates an online discount retail business in China through its Vip.com platform. The company uses a flash-sale model, offering time-limited promotions on branded products across categories such as apparel, footwear, cosmetics, home goods, consumer electronics and baby products. Founded in 2008 and headquartered in Guangzhou, Vipshop serves customers across China. Its business also includes online marketplace services and supporting retail and logistics operations. Co-founder Shen Ya, also known as Eric Shen, serves as the company’s chairman and chief executive officer.
About iPower
iPower Inc. (NASDAQ: IPW) is an e-commerce company focused on indoor gardening, hydroponics and related growing supplies. The company serves home gardeners, hobbyists and other consumers seeking equipment for controlled-environment cultivation. Its product offerings include grow lights, grow tents, ventilation and air-movement equipment, hydroponic systems, pumps, growing media, nutrients, containers and other gardening accessories. iPower sells products through its own online channels and third-party e-commerce marketplaces, including platforms such as Amazon and Walmart.
Receive News & Ratings for Vipshop Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Vipshop and related companies with MarketBeat.com's FREE daily email newsletter.
