Head-To-Head Survey: Victoria’s Secret & Co. (NYSE:VSXY) and Petco Health and Wellness (NASDAQ:WOOF)

Victoria’s Secret & Co. (NYSE:VSXY) and Petco Health and Wellness (NASDAQ:WOOF) are both consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, risk, institutional ownership, valuation, dividends and analyst recommendations.

Insider and Institutional Ownership

90.3% of Victoria’s Secret & Co. shares are held by institutional investors. 0.5% of Victoria’s Secret & Co. shares are held by insiders. Comparatively, 6.5% of Petco Health and Wellness shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Victoria’s Secret & Co. and Petco Health and Wellness’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Victoria’s Secret & Co.	5.46%	40.43%	7.04%
Petco Health and Wellness	0.51%	3.44%	0.78%

Analyst Ratings

This is a breakdown of recent ratings for Victoria’s Secret & Co. and Petco Health and Wellness, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Victoria’s Secret & Co.	0	7	8	0	2.53
Petco Health and Wellness	1	6	1	1	2.22

Victoria’s Secret & Co. presently has a consensus price target of $92.00, suggesting a potential downside of 3.54%. Petco Health and Wellness has a consensus price target of $3.42, suggesting a potential upside of 36.25%. Given Petco Health and Wellness’ higher probable upside, analysts plainly believe Petco Health and Wellness is more favorable than Victoria’s Secret & Co..

Volatility and Risk

Victoria’s Secret & Co. has a beta of 2.01, meaning that its stock price is 101% more volatile than the S&P 500. Comparatively, Petco Health and Wellness has a beta of 1.59, meaning that its stock price is 59% more volatile than the S&P 500.

Earnings & Valuation

This table compares Victoria’s Secret & Co. and Petco Health and Wellness”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Victoria’s Secret & Co.	$6.91 billion	1.10	$161.00 million	$3.45	27.65
Petco Health and Wellness	$5.97 billion	0.14	$9.07 million	$0.10	25.10

Victoria’s Secret & Co. has higher revenue and earnings than Petco Health and Wellness. Petco Health and Wellness is trading at a lower price-to-earnings ratio than Victoria’s Secret & Co., indicating that it is currently the more affordable of the two stocks.

Summary

Victoria’s Secret & Co. beats Petco Health and Wellness on 12 of the 15 factors compared between the two stocks.

About Victoria’s Secret & Co.

Victoria’s Secret & Co. operates as a lingerie, clothing and beauty retailer. It offers bras, panties, lingerie, pajamas, sleep, sport and swim apparel, and beauty products. The company was founded in 1963 and is headquartered in Reynoldsburg, OH.

About Petco Health and Wellness

Petco Health and Wellness Company, Inc., operates as a health and wellness company, focuses on enhancing the lives of pets, pet parents, and its Petco partners in the United States, Mexico, and Puerto Rico. The company provides veterinary care, grooming, training, tele-health, and Vital Care and pet health insurance services, as well as veterinary services through Vetco mobile clinics. It also offers pet consumables, supplies, and services through its petco.com, petcoach.co, petinsurancequotes.com, and pupbox.com websites. The company offers its products under the WholeHearted, Reddy, and Well & Good brands. Petco Health and Wellness Company, Inc. was founded in 1965 and is headquartered in San Diego, California.