Vince Holding Corp. (VNCE) versus Under Armour (UA) Financial Analysis

Vince Holding Corp. (NYSE: VNCE) and Under Armour (NYSE:UA) are both consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, dividends, analyst recommendations, profitability, valuation and risk.

Valuation & Earnings

This table compares Vince Holding Corp. and Under Armour’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	EBITDA	Earnings Per Share	Price/Earnings Ratio
Vince Holding Corp.	$258.60 million	0.09	$1.97 million	($3.44)	-0.13
Under Armour	$4.98 billion	1.38	$526.36 million	$0.48	32.58

Under Armour has higher revenue and earnings than Vince Holding Corp.. Vince Holding Corp. is trading at a lower price-to-earnings ratio than Under Armour, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations and price targets for Vince Holding Corp. and Under Armour, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vince Holding Corp.	0	2	2	0	2.50
Under Armour	6	10	3	0	1.84

Vince Holding Corp. presently has a consensus price target of $3.88, suggesting a potential upside of 736.93%. Under Armour has a consensus price target of $18.67, suggesting a potential upside of 19.35%. Given Vince Holding Corp.’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Vince Holding Corp. is more favorable than Under Armour.

Risk and Volatility

Vince Holding Corp. has a beta of 1.82, suggesting that its stock price is 82% more volatile than the S&P 500. Comparatively, Under Armour has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500.

Profitability

This table compares Vince Holding Corp. and Under Armour’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vince Holding Corp.	-65.75%	-24.26%	-4.82%
Under Armour	4.38%	11.06%	5.96%

Institutional & Insider Ownership

23.7% of Vince Holding Corp. shares are owned by institutional investors. Comparatively, 57.1% of Under Armour shares are owned by institutional investors. 56.5% of Vince Holding Corp. shares are owned by insiders. Comparatively, 16.5% of Under Armour shares are owned by 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.

Summary

Under Armour beats Vince Holding Corp. on 9 of the 13 factors compared between the two stocks.

Vince Holding Corp. Company Profile

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.

Under Armour Company Profile

Under Armour, Inc. is engaged in the development, marketing and distribution of branded performance apparel, footwear and accessories for men, women and youth. The Company’s segments include North America, consisting of the United States and Canada; Europe, the Middle East and Africa (EMEA); Asia-Pacific; Latin America, and Connected Fitness. Its products are sold across the world and worn by athletes at all levels, from youth to professional, on playing fields around the globe, as well as by consumers with active lifestyles. The Company sells its branded apparel, footwear and accessories in North America through its wholesale and direct to consumer channels. As of December 31, 2016, the Company had approximately 151 factory house stores in North America primarily located in outlet centers throughout the United States. In addition, the Company distributes its products in North America through third-party logistics providers with primary locations in Canada, New Jersey and Florida.