Vera Bradley (NASDAQ:VRA) and Capri (NYSE:CPRI) are both retail/wholesale companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, profitability, risk and valuation.
Risk and Volatility
Vera Bradley has a beta of 0.69, meaning that its stock price is 31% less volatile than the S&P 500. Comparatively, Capri has a beta of 0.48, meaning that its stock price is 52% less volatile than the S&P 500.
This is a breakdown of current ratings and target prices for Vera Bradley and Capri, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Vera Bradley currently has a consensus price target of $10.67, indicating a potential upside of 19.18%. Capri has a consensus price target of $45.00, indicating a potential upside of 5.93%. Given Vera Bradley’s higher possible upside, equities research analysts plainly believe Vera Bradley is more favorable than Capri.
Valuation and Earnings
This table compares Vera Bradley and Capri’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Vera Bradley||$454.65 million||0.68||$7.01 million||$0.60||14.92|
|Capri||$4.72 billion||1.35||$591.90 million||$4.52||9.40|
Capri has higher revenue and earnings than Vera Bradley. Capri is trading at a lower price-to-earnings ratio than Vera Bradley, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
74.3% of Vera Bradley shares are held by institutional investors. Comparatively, 86.6% of Capri shares are held by institutional investors. 30.1% of Vera Bradley shares are held by company insiders. Comparatively, 6.0% of Capri shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
This table compares Vera Bradley and Capri’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Capri beats Vera Bradley on 8 of the 12 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 two segments, Direct and Indirect. The company offers totes, crossbodies, satchels, clutches, backpacks, baby bags, and lunch bags; accessories, including wallets, wristlets, eyeglass cases, scarves, and various technology accessories; and travel products, such as 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, which comprise mugs and tumblers; and other products, including apparel/footwear, stationery, merchandising, and gift card products, as well as freight and licensing services. The company sells its Vera Bradley branded products through its full-line and factory outlet stores in the United States; verabradley.com, an online outlet site; and direct-to-consumer eBay sales, as well as its annual outlet sale in Fort Wayne, Indiana. As of February 3, 2018, it operated 109 full-line stores and 51 factory outlet stores. The company also sells its Vera Bradley branded products to approximately 2,400 specialty retail locations located in the United States, as well as department stores, national accounts, third party e-commerce sites, and third-party inventory liquidators, as well as through licensing agreements. Vera Bradley, Inc. was founded in 1982 and is headquartered in Roanoke, Indiana.
Capri Holdings Ltd. engages in the design and distribution of sportswear, accessories, footwear and apparel of branded women’s apparel and accessories and men’s apparel. The firm operates its business through three segments: Retail, Wholesale and Licensing. The Retail segment operates collection stores, lifestyle stores, including concessions and outlet stores located primarily in the United States, Canada, Europe and Japan. The Wholesale segment sells the company’s products to department stores, as well as specialty retail stores and travel shopping locations. The Licensing segment licenses its trademarks on products such as fragrances, cosmetics, eyewear, leather goods, jewelry, watches, coats, men’s suits, swimwear, furs and ties. The company was founded by Michael David Kors on December 13, 2002 and is headquartered in London, the United Kingdom.
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