Analyzing Stein Mart (OTCMKTS:SMRTQ) and Victoria’s Secret & Co. (NYSE:VSXY)

Stein Mart (OTCMKTS:SMRTQ) and Victoria’s Secret & Co. (NYSE:VSXY) are both consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, dividends, risk, valuation, earnings and institutional ownership.

Analyst Recommendations

This is a summary of current recommendations and price targets for Stein Mart and Victoria’s Secret & Co., as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stein Mart	0	0	0	0	0.00
Victoria’s Secret & Co.	0	6	6	1	2.62

Victoria’s Secret & Co. has a consensus price target of $90.70, indicating a potential upside of 8.14%. Given Victoria’s Secret & Co.’s stronger consensus rating and higher probable upside, analysts clearly believe Victoria’s Secret & Co. is more favorable than Stein Mart.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Stein Mart	N/A	N/A	N/A
Victoria’s Secret & Co.	3.11%	38.03%	6.10%

Earnings & Valuation

This table compares Stein Mart and Victoria’s Secret & Co.”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Stein Mart	N/A	N/A	N/A	N/A	N/A
Victoria’s Secret & Co.	$6.55 billion	1.02	$161.00 million	$1.86	45.09

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

Insider and Institutional Ownership

90.3% of Victoria’s Secret & Co. shares are owned by institutional investors. 39.4% of Stein Mart shares are owned by company insiders. Comparatively, 0.5% of Victoria’s Secret & Co. shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Victoria’s Secret & Co. beats Stein Mart on 9 of the 10 factors compared between the two stocks.

About Stein Mart

Stein Mart, Inc., a specialty omnichannel off-price retailer, offers designer and name-brand fashion apparels, home décor merchandise, accessories, and shoes at everyday discount prices in the United States. The company's stores also provides endless aisle, a mobile technology to locate products; a SMart Rewards loyalty program; co-branded and private label credit card programs; and electronic gift cards. As of June 3, 2020, it operated 281 stores in 30 states. The company also sells its products through an online retail selling site. Stein Mart, Inc. was founded in 1908 and is headquartered in Jacksonville, Florida. On August 12, 2020, Stein Mart, Inc., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Middle District of Florida.

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.