Financial Comparison: Chico’s FAS (NYSE:CHS) vs. Victoria’s Secret (NYSE:VSCO)

Chico’s FAS (NYSE:CHS) and Victoria’s Secret (NYSE:VSCO) are both retail/wholesale companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, risk, analyst recommendations, dividends, institutional ownership and profitability.

Analyst Ratings

This is a breakdown of recent ratings for Chico’s FAS and Victoria’s Secret, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Chico’s FAS 0 2 0 0 2.00
Victoria’s Secret 0 3 5 0 2.63

Chico’s FAS currently has a consensus target price of $5.63, indicating a potential upside of 15.03%. Victoria’s Secret has a consensus target price of $88.88, indicating a potential upside of 47.51%. Given Victoria’s Secret’s stronger consensus rating and higher probable upside, analysts plainly believe Victoria’s Secret is more favorable than Chico’s FAS.

Valuation & Earnings

This table compares Chico’s FAS and Victoria’s Secret’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Chico’s FAS $1.32 billion 0.45 -$360.14 million ($1.38) -3.54
Victoria’s Secret N/A N/A N/A N/A N/A

Victoria’s Secret has lower revenue, but higher earnings than Chico’s FAS.

Insider and Institutional Ownership

77.3% of Chico’s FAS shares are held by institutional investors. 2.8% of Chico’s FAS shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Chico’s FAS and Victoria’s Secret’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Chico’s FAS -7.37% -40.13% -5.91%
Victoria’s Secret N/A N/A N/A

Summary

Victoria’s Secret beats Chico’s FAS on 6 of the 9 factors compared between the two stocks.

Chico’s FAS Company Profile

Chico’s FAS, Inc. engages in the retail of women’s private branded, sophisticated, casual-to-dressy apparel, intimates, and complementary accessories. The firm’s product portfolio consists of the following brands: Chico’s, Soma, and White House Black Market. It also operates boutiques, retail stores, and websites to sell the products. The company was founded by Helene B. Gralnick and Marvin L. Gralnick in 1983 and is headquartered in Fort Myers, FL.

Victoria’s Secret Company Profile

Victoria’s Secret & Co. is an intimate specialty retailer offering assortment of modern, fashion-inspired collections including signature bras, panties, lingerie, casual sleepwear and athleisure, as well as prestige fragrances and body care. Victoria’s Secret & Co. is based in COLUMBUS, Ohio.

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