Iconix Brand Group (NASDAQ: ICON) and Vince Holding Corp. (NYSE:VNCE) are both small-cap consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, earnings, analyst recommendations, risk, profitabiliy and valuation.
Analyst Ratings
This is a breakdown of current ratings and target prices for Iconix Brand Group and Vince Holding Corp., as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Iconix Brand Group | 0 | 1 | 2 | 0 | 2.67 |
| Vince Holding Corp. | 0 | 2 | 2 | 0 | 2.50 |
Iconix Brand Group presently has a consensus price target of $10.75, suggesting a potential upside of 93.69%. Vince Holding Corp. has a consensus price target of $3.88, suggesting a potential upside of 631.41%. Given Vince Holding Corp.’s higher possible upside, analysts clearly believe Vince Holding Corp. is more favorable than Iconix Brand Group.
Earnings and Valuation
This table compares Iconix Brand Group and Vince Holding Corp.’s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Iconix Brand Group | $359.51 million | 0.88 | $157.43 million | ($4.89) | -1.13 |
| Vince Holding Corp. | $258.60 million | 0.10 | $1.97 million | ($3.44) | -0.15 |
Iconix Brand Group has higher revenue and earnings than Vince Holding Corp.. Iconix Brand Group is trading at a lower price-to-earnings ratio than Vince Holding Corp., indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Iconix Brand Group has a beta of 1.41, indicating that its stock price is 41% more volatile than the S&P 500. Comparatively, Vince Holding Corp. has a beta of 1.82, indicating that its stock price is 82% more volatile than the S&P 500.
Institutional and Insider Ownership
83.8% of Iconix Brand Group shares are owned by institutional investors. Comparatively, 24.4% of Vince Holding Corp. shares are owned by institutional investors. 1.3% of Iconix Brand Group shares are owned by company insiders. Comparatively, 56.5% of Vince Holding Corp. shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Profitability
This table compares Iconix Brand Group and Vince Holding Corp.’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Iconix Brand Group | -82.70% | 9.27% | 2.69% |
| Vince Holding Corp. | -65.75% | -24.26% | -4.82% |
Summary
Iconix Brand Group beats Vince Holding Corp. on 7 of the 12 factors compared between the two stocks.
About Iconix Brand Group
Iconix Brand Group, Inc. is a brand management company. As of December 31, 2016, the Company owned a portfolio of over 30 global consumer brands across women’s, men’s, and home categories. The Company operates through segments: men’s, women’s, home and international. The Company’s brand portfolio includes brands, such as Candie’s, Bongo, Joe Boxer, Rampage, Mudd, London Fog, Mossimo, Ocean Pacific/OP, Danskin/Danskin Now, Rocawear/Roc Nation, Cannon, Royal Velvet, Fieldcrest, Charisma, Starter, Waverly, Ecko Unltd/Mark Ecko Cut & Sew, Zoo York, Sharper Image, Umbro, Lee Cooper and Artful Dodger, and interests in Material Girl, Ed Hardy, Truth or Dare, Modern Amusement, Buffalo, Nick Graham Hydraulic and PONY brands. It operates in various geographic regions, including the United States, Japan and Other (which principally represent Latin America and Europe).
About Vince Holding Corp.
Vince Holding Corp. (Vince) is a United States-based company, which offers a range of women’s and men’s apparel, women’s and men’s footwear, and handbags. The Company operates as a fashion brand. The Company operates in two segments: Wholesale and Direct-to-consumer. The Company’s Wholesale segment consists of its operations to distribute products to various department stores and specialty stores in the United States and select international markets. The Company’s Direct-to-consumer segment consists of its operations to distribute products directly to the consumer through its branded specialty retail stores, outlet stores and e-commerce platform. The Company utilizes luxe fabrications and various techniques to create its product assortment. The Company serves its customers through various channels, including wholesale department stores and specialty stores in the United States, as well as through its branded retail locations and its Website.
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