Vince Holding Corp. (NYSE: VNCE) and Columbia Sportswear (NASDAQ:COLM) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, earnings and analyst recommendations.

Risk and Volatility

Vince Holding Corp. has a beta of 1.82, suggesting that its stock price is 82% more volatile than the S&P 500. Comparatively, Columbia Sportswear has a beta of 0.8, suggesting that its stock price is 20% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Vince Holding Corp. and Columbia Sportswear, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vince Holding Corp. 0 2 2 0 2.50
Columbia Sportswear 0 7 6 0 2.46

Vince Holding Corp. currently has a consensus price target of $3.88, suggesting a potential upside of 726.58%. Columbia Sportswear has a consensus price target of $63.45, suggesting a potential upside of 10.95%. Given Vince Holding Corp.’s stronger consensus rating and higher possible upside, equities analysts plainly believe Vince Holding Corp. is more favorable than Columbia Sportswear.

Institutional and Insider Ownership

23.7% of Vince Holding Corp. shares are owned by institutional investors. Comparatively, 39.1% of Columbia Sportswear shares are owned by institutional investors. 58.4% of Vince Holding Corp. shares are owned by insiders. Comparatively, 58.9% of Columbia Sportswear shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Vince Holding Corp. and Columbia Sportswear’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Vince Holding Corp. -65.75% -24.26% -4.82%
Columbia Sportswear 8.01% 12.31% 9.84%

Valuation and Earnings

This table compares Vince Holding Corp. and Columbia Sportswear’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Vince Holding Corp. $258.60 million 0.09 $1.97 million ($3.44) -0.14
Columbia Sportswear $2.41 billion 1.66 $319.52 million $2.72 21.03

Columbia Sportswear has higher revenue and earnings than Vince Holding Corp.. Vince Holding Corp. is trading at a lower price-to-earnings ratio than Columbia Sportswear, indicating that it is currently the more affordable of the two stocks.

Dividends

Columbia Sportswear pays an annual dividend of $0.72 per share and has a dividend yield of 1.3%. Vince Holding Corp. does not pay a dividend. Columbia Sportswear pays out 26.5% of its earnings in the form of a dividend.

Summary

Columbia Sportswear beats Vince Holding Corp. on 11 of the 15 factors compared between the two stocks.

Vince Holding Corp. Company Profile

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.

Columbia Sportswear Company Profile

Columbia Sportswear Company is an apparel and footwear company. The Company designs, sources, markets and distributes outdoor lifestyle apparel, footwear, accessories and equipment under the Columbia, Mountain Hardwear, Sorel, prAna and other brands. Its geographic segments are the United States, Latin America and Asia Pacific (LAAP), Europe, Middle East and Africa (EMEA), and Canada. The Company develops and manages its merchandise in categories, including apparel, accessories and equipment, and footwear. It distributes its products through a mix of wholesale distribution channels, its own direct-to-consumer channels (retail stores and e-commerce), independent distributors and licensees. As of December 31, 2016, its products were sold in approximately 90 countries. In 59 of those countries, it sells to independent distributors to whom it has granted distribution rights. Contract manufacturers located outside the United States manufacture all of its products.

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