Reviewing Chico’s FAS (NYSE:CHS) and Victoria’s Secret (NYSE:VSCO)

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

Valuation & Earnings

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

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

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

Analyst Ratings

This is a summary of recent recommendations and price targets for Victoria’s Secret and Chico’s FAS, as provided by MarketBeat.

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

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

Profitability

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

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

Institutional & Insider Ownership

77.3% of Chico’s FAS shares are owned by institutional investors. 2.8% of Chico’s FAS shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

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

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.

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.

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