Reviewing Victoria’s Secret & Co. (NYSE:VSCO) & Genesco (NYSE:GCO)

Victoria’s Secret & Co. (NYSE:VSCO) and Genesco (NYSE:GCO) are both retail/wholesale companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, dividends, earnings, valuation, profitability, risk and institutional ownership.

Earnings & Valuation

This table compares Victoria’s Secret & Co. and Genesco”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Victoria’s Secret & Co.	$6.27 billion	0.45	$165.00 million	$1.80	19.48
Genesco	$2.36 billion	0.14	-$18.89 million	($2.44)	-12.82

Victoria’s Secret & Co. has higher revenue and earnings than Genesco. Genesco 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.

Analyst Ratings

This is a breakdown of current ratings for Victoria’s Secret & Co. and Genesco, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Victoria’s Secret & Co.	3	7	4	0	2.07
Genesco	1	3	0	1	2.20

Victoria’s Secret & Co. presently has a consensus target price of $29.91, indicating a potential downside of 14.69%. Genesco has a consensus target price of $30.00, indicating a potential downside of 4.11%. Given Genesco’s stronger consensus rating and higher probable upside, analysts clearly believe Genesco is more favorable than Victoria’s Secret & Co..

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Victoria’s Secret & Co.	2.42%	33.77%	4.49%
Genesco	-1.03%	1.75%	0.65%

Volatility and Risk

Victoria’s Secret & Co. has a beta of 2.26, meaning that its stock price is 126% more volatile than the S&P 500. Comparatively, Genesco has a beta of 2.23, meaning that its stock price is 123% more volatile than the S&P 500.

Insider & Institutional Ownership

90.3% of Victoria’s Secret & Co. shares are held by institutional investors. Comparatively, 94.5% of Genesco shares are held by institutional investors. 0.5% of Victoria’s Secret & Co. shares are held by insiders. Comparatively, 23.1% of Genesco shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Victoria’s Secret & Co. beats Genesco on 10 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 Genesco

Genesco Inc. operates as a retailer and wholesaler of footwear, apparel, and accessories in the United States, Puerto Rico, Canada, the United Kingdom, and the Republic of Ireland. The company operates through four segments: Journeys Group, Schuh Group, Johnston & Murphy Group, and Genesco Brands. The Journeys Group segment offers footwear and accessories through the Journeys, Journeys Kidz, and Little Burgundy retail chains, as well as through e-commerce and catalogs for young men, women, and children. Its Schuh Group segment operates Schuh retail footwear stores that offer casual and athletic footwear, as well as sells footwear through e-commerce. The Johnston & Murphy Group segment involved in the retail and e-commerce operations; and wholesale distribution of men’s dress and casual footwear, apparel, and accessories, as well as women’s footwear and accessories. Its Genesco Brands Group segment markets footwear under the Levi’s, Dockers, and G.H. Bass brands for men, women, and children, as well as designs and manufactures the STARTER brands footwear. The company operates through Journeys, Journeys Kidz, Schuh, Little Burgundy, and Johnston & Murphy brand names; and e-commerce websites, including journeys.com, journeyskidz.com, journeys.ca, schuh.co.uk, schuh.ie, schuh.eu, johnstonmurphy.com, littleburgundyshoes.com, johnstonmurphy.ca, nashvilleshoewarehouse.com, and dockersshoes.com. Genesco Inc. was incorporated in 1934 and is headquartered in Nashville, Tennessee.