Vince Holding Corp. (NYSE: VNCE) and Iconix Brand Group (NASDAQ:ICON) are both small-cap consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their profitabiliy, valuation, analyst recommendations, risk, earnings, dividends and institutional ownership.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Vince Holding Corp. and Iconix Brand Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vince Holding Corp. 0 2 2 0 2.50
Iconix Brand Group 0 1 2 0 2.67

Vince Holding Corp. currently has a consensus target price of $3.88, suggesting a potential upside of 631.41%. Iconix Brand Group has a consensus target price of $10.75, suggesting a potential upside of 93.69%. Given Vince Holding Corp.’s higher probable upside, analysts plainly believe Vince Holding Corp. is more favorable than Iconix Brand Group.

Earnings and Valuation

This table compares Vince Holding Corp. and Iconix Brand Group’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Vince Holding Corp. $258.60 million 0.10 $1.97 million ($3.44) -0.15
Iconix Brand Group $359.51 million 0.88 $157.43 million ($4.89) -1.13

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

Vince Holding Corp. has a beta of 1.82, meaning that its share price is 82% more volatile than the S&P 500. Comparatively, Iconix Brand Group has a beta of 1.41, meaning that its share price is 41% more volatile than the S&P 500.

Insider and Institutional Ownership

24.4% of Vince Holding Corp. shares are held by institutional investors. Comparatively, 83.8% of Iconix Brand Group shares are held by institutional investors. 56.5% of Vince Holding Corp. shares are held by company insiders. Comparatively, 1.3% of Iconix Brand Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Vince Holding Corp. and Iconix Brand Group’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%
Iconix Brand Group -82.70% 9.27% 2.69%

Summary

Iconix Brand Group beats Vince Holding Corp. on 7 of the 12 factors compared between the two stocks.

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.

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).

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