Contrasting Esprit (OTCMKTS:ESPGY) and Vera Bradley (NASDAQ:VRA)

Esprit (OTCMKTS:ESPGY) and Vera Bradley (NASDAQ:VRA) are both small-cap retail/wholesale companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitability, institutional ownership, risk and analyst recommendations.

Insider & Institutional Ownership

59.9% of Vera Bradley shares are held by institutional investors. 14.3% of Vera Bradley shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Esprit and Vera Bradley”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Esprit	$5.38 million	0.39	-$157.30 million	N/A	N/A
Vera Bradley	$269.65 million	0.37	-$47.84 million	($0.69)	-5.03

Vera Bradley has higher revenue and earnings than Esprit.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Esprit and Vera Bradley, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Esprit	0	0	0	0	0.00
Vera Bradley	1	2	0	0	1.67

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Esprit	N/A	N/A	N/A
Vera Bradley	-7.02%	-6.66%	-3.65%

Summary

Vera Bradley beats Esprit on 5 of the 9 factors compared between the two stocks.

About Esprit

Esprit Holdings Limited, an investment holding company, engages in retail and wholesale distribution, and licensing of fashion and non-apparel products. It operates through Europe; Asia; E-shop; and Corporate Services, Sourcing, Licensing and Others segments. The company offers apparel and accessories under the ESPRIT brand name through retail stores and e-commerce platforms. It is also involved in the sourcing, purchasing, distributing, and sale of merchandise; provision of financial and treasury services, as well as logistic services comprising customs dealing and quality control; design and image directions; and conceptualization and development of global uniform image businesses. Esprit Holdings Limited was founded in 1968 and is headquartered in North Point, Hong Kong.

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 three segments: Vera Bradley Direct, Vera Bradley Indirect, and Pura Vida. The company offers bag products, such as totes, crossbodies, satchels, clutches, backpacks, baby bags, and lunch bags; accessories, including ID holders, lanyards, wallets, wristlets, eyewear, scarves, hair accessories, and various technology accessories; bracelets, rings, and necklaces under Pura Vida brand name; and travel products consist of 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, such as mugs and tumblers; apparel/footwear comprising sleepwear, footwear, outerwear, tees and hoodies, and socks; and stationery and merchandising products, as well as freight, licensing, and gift card breakage services. The company sells its Vera Bradley branded products through its full-line and outlet stores in the United States; verabradley.com, an online outlet site; its annual outlet sale in Fort Wayne, Indiana. It sells its Pura Vida branded products through wholesale retailers and Pura Vida websites, including www.puravidabracelets.com, www.puravidabracelets.eu, and www.puravidabracelets.ca; and Vera Bradley Indirect branded products to specialty retail locations, department stores, national accounts, third party e-commerce sites, third-party inventory liquidators, and through licensing agreements. Vera Bradley, Inc. was incorporated in 1982 and is headquartered in Roanoke, Indiana.