Vipshop (NYSE:VIPS – Get Free Report) and iPower (NASDAQ:IPW – Get Free Report) are both consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, valuation, profitability and institutional ownership.
Risk and Volatility
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.
Institutional & Insider Ownership
48.8% of Vipshop shares are held by institutional investors. Comparatively, 2.7% of iPower shares are held by institutional investors. 29.5% of Vipshop shares are held by insiders. Comparatively, 0.7% of iPower shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Vipshop and iPower, as reported by MarketBeat.
| 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 currently has a consensus price target of $17.16, suggesting a potential upside of 24.40%. Given Vipshop’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Vipshop is more favorable than iPower.
Earnings and Valuation
This table compares Vipshop and iPower”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Vipshop | $105.13 billion | 0.06 | $1.04 billion | $3.02 | 4.57 |
| 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.
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 13 of the 14 factors compared between the two stocks.
About Vipshop
Vipshop Holdings Limited operates online platforms in the People's Republic of China. It operates in Vip.com, Shan Shan Outlets, and Others segments. The company offers womenswear, menswear, sportswear and sporting goods, shoes and bags, accessories, baby and children products, skincare and cosmetics, home goods and other lifestyle products, and supermarket products. It also provides internet finance services, including consumer and supplier financing. In addition, the company engages in warehousing, retail business, product procurement, and software development and information technology support activities. The company provides branded products through its vip.com and vipshop.com online platforms, as well as through retail stores. Vipshop Holdings Limited was founded in 2008 and is headquartered in Guangzhou, the People's Republic of China.
About iPower
iPower Inc. operates as an online retailer and supplier of consumer home, garden, and pet products for commercial businesses and individuals in the United States. The company offers grow light systems; advanced heating, ventilation, and air conditioning systems; water pumps, heaters, chillers, and filters; nutrient and fertilizer delivery systems; and various growing media products. It also provides general gardening products, including environmental sensors and controls; and home products, which comprise commercial fans, floor and wall fans, storage and shelving units, and chairs. The company sells its products under the iPower and Simple Deluxe brand names through zenhydro.com, simpledeluxe.com, and various third-party online platforms. The company was formerly known as BZRTH Inc. and changed its name to iPower Inc. in September 2020. iPower Inc. was incorporated in 2018 and is based in Rancho Cucamonga, California.
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