Capri (NYSE:CPRI) and Vera Bradley (NASDAQ:VRA) are both retail/wholesale companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, analyst recommendations, valuation, dividends and profitability.

Analyst Ratings

This is a summary of current ratings and price targets for Capri and Vera Bradley, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Capri 0 2 3 0 2.60
Vera Bradley 0 3 0 0 2.00

Capri presently has a consensus target price of $58.75, suggesting a potential upside of 30.24%. Vera Bradley has a consensus target price of $10.67, suggesting a potential upside of 17.22%. Given Capri’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Capri is more favorable than Vera Bradley.

Earnings and Valuation

This table compares Capri and Vera Bradley’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Capri $4.72 billion 1.44 $591.90 million $4.52 9.98
Vera Bradley $454.65 million 0.69 $7.01 million $0.60 15.17

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.

Profitability

This table compares Capri and Vera Bradley’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Capri 11.19% 35.44% 16.62%
Vera Bradley 4.80% 8.30% 6.80%

Risk and Volatility

Capri has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500. Comparatively, Vera Bradley has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500.

Institutional and Insider Ownership

89.1% of Capri shares are held by institutional investors. Comparatively, 73.2% of Vera Bradley shares are held by institutional investors. 6.0% of Capri shares are held by insiders. Comparatively, 30.1% of Vera Bradley 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.

Summary

Capri beats Vera Bradley on 11 of the 14 factors compared between the two stocks.

About Capri

Capri Holdings Limited design, markets, distributes, and retails branded women's and men's apparel and accessories. It operates in four segments: MK Retail, MK Wholesale, MK Licensing, and Jimmy Choo. The MK Retail segment sells women's apparel; handbags and small leather goods; men's apparel; footwear; and licensed products comprising watches, jewelry, fragrances, and beauty and eyewear. It operates collection stores and lifestyle stores, including concessions and outlets. As of March 31, 2018, this segment operated 379 Michael Kors retail stores, including concessions in the United States and Canada, and Latin America; and 450 international retail stores, including concessions in Europe and Asia, as well as e-commerce sites in North America, Canada, Europe, China, Japan, and South Korea. The MK Wholesale segment sells handbags and small leather goods; footwear; and women's and men's apparel to department stores and specialty shops in the Americas, Europe, and Asia. The MK Licensing segment licenses its trademarks to third parties to operate retail stores and/or sell the its products in Brazil, the Middle East, South Africa, Eastern Europe, Asia, and Australia. The Jimmy Choo segment sells luxury footwear, handbags, and small leather goods through directly operated Jimmy Choo stores in North America; Europe, the Middle East, and Africa; and Asia, as well as through Jimmy Choo e-commerce sites. It is also involved in the wholesale distribution activities worldwide; and licensing agreements related to the manufacture and sale of fragrance, sunglasses, and eyewear. As of March 31, 2018, this segment operated 629 wholesale doors. The company sells its products under the names of MICHAEL KORS, MICHAEL MICHAEL KORS, JIMMY CHOO, and other trademarks and logos. The company was formerly known as Michael Kors Holdings Limited and changed its name to Capri Holdings Limited in December 2018. Capri Holdings Limited was founded in 1981 and is based in London, the United Kingdom.

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.

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