Vince (NYSE: VNCE) and Xtep International (OTCMKTS:XTEPY) are both small-cap consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, profitability, institutional ownership, dividends, valuation and risk.

Risk & Volatility

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Vince has a beta of 1.83, suggesting that its stock price is 83% more volatile than the S&P 500. Comparatively, Xtep International has a beta of -0.12, suggesting that its stock price is 112% less volatile than the S&P 500.

Dividends

Xtep International pays an annual dividend of $1.41 per share and has a dividend yield of 3.4%. Vince does not pay a dividend.

Analyst Ratings

This is a breakdown of recent ratings for Vince and Xtep International, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vince 0 1 0 0 2.00
Xtep International 0 0 0 0 N/A

Vince presently has a consensus price target of $1.00, suggesting a potential downside of 88.69%. Given Vince’s higher possible upside, research analysts plainly believe Vince is more favorable than Xtep International.

Earnings and Valuation

This table compares Vince and Xtep International’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Vince $268.20 million 0.38 -$162.65 million ($36.29) -0.24
Xtep International $812.19 million 1.15 $79.44 million N/A N/A

Xtep International has higher revenue and earnings than Vince.

Profitability

This table compares Vince and Xtep International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Vince -68.01% -120.03% -9.74%
Xtep International N/A N/A N/A

Institutional & Insider Ownership

4.7% of Vince shares are held by institutional investors. 74.0% of Vince shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Xtep International beats Vince on 7 of the 11 factors compared between the two stocks.

About Vince

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 Xtep International

Xtep International Holdings Limited designs, develops, manufactures, and markets sportswear primarily in the People's Republic of China. The company offers sportswear, including footwear, apparel, and accessory products primarily under the Xtep brand. It is also involved in the trading of sportswear. As of December 31, 2016, the company had approximately 6,800 retail stores; and 250 Xtep kids brand POS. It also offers its products online. The company was founded in 1999 and is headquartered in Quanzhou, the People's Republic of China. Xtep International Holdings Limited is a subsidiary of Group Success Investments Limited.

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