Comparing Ruhnn (NASDAQ:RUHN) and Vipshop (NASDAQ:VIPS)

Ruhnn (NASDAQ:RUHN) and Vipshop (NYSE:VIPS) are both business services companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, institutional ownership, valuation and risk.

Profitability

This table compares Ruhnn and Vipshop’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ruhnn N/A N/A N/A
Vipshop 2.89% 12.56% 5.61%

Earnings & Valuation

This table compares Ruhnn and Vipshop’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ruhnn $162.93 million 1.84 -$11.10 million N/A N/A
Vipshop $12.29 billion 0.41 $309.62 million $0.43 17.98

Vipshop has higher revenue and earnings than Ruhnn.

Analyst Recommendations

This is a breakdown of recent recommendations for Ruhnn and Vipshop, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ruhnn 0 0 0 0 N/A
Vipshop 2 5 3 0 2.10

Vipshop has a consensus price target of $8.08, suggesting a potential upside of 4.53%. Given Vipshop’s higher possible upside, analysts clearly believe Vipshop is more favorable than Ruhnn.

Institutional & Insider Ownership

46.1% of Vipshop shares are owned by institutional investors. 29.5% of Vipshop shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Vipshop beats Ruhnn on 9 of the 10 factors compared between the two stocks.

About Ruhnn

Ruhnn Holding Limited, together with its subsidiaries, operates key opinion leader (KOL) cultivation and incubation platforms in the People's Republic of China. The company engages in the sale of various fashion and lifestyle products to consumers through its KOL online stores; and provision of various KOL sales and advertising services to third-party merchants. Its online stores primarily provide women's apparel, cosmetics, shoes, and handbags. As of December 31, 2018, it owned and operated 91 online stores. The company was founded in 2016 and is headquartered in Hangzhou, the People's Republic of China.

About Vipshop

Vipshop Holdings Limited operates as an online discount retailer for various brands in the People's Republic of China. It operates in two segments, Vip.com and Internet Finance Business. The company offers women's apparel, such as casual wear, jeans, dresses, outerwear, swimsuits, lingerie, pajamas, and maternity clothes; men's apparel comprising casual and smart-casual T-shirts, polo shirts, jackets, pants, and underwear; women and men casual and formal shoes; and accessories that include belts, jewelry, watches, and glasses for women and men. It also provides handbags, which comprise purses, satchels, duffel bags, and wallets; apparel, gears and accessories, furnishings and decor, toys, and games for boys, girls, infants, and toddlers; sports apparel, sports gear, and footwear for tennis, badminton, soccer, and swimming; and consumer electronic products, including computers, mobile handsets, digital cameras, and home appliances. In addition, the company offers skin care and cosmetic products, such as cleansers, lotions, face and body creams, face masks, sunscreens, foundations, lipsticks, eye shadows, and nail polish; and home furnishings comprising bedding and bath products, home decors, dining and tabletop items, and small household appliances. Further, it provides designer apparel, footwear, and accessories; and snacks and health supplements, and occasion-based gifts. Additionally, the company offers Internet finance services, which comprise consumer and supplier financing, and microcredit, as well as wealth management services. It provides its branded products through its vipshop.com, vip.com, and lefeng.com online platforms, as well as through its cellular phone application. Additionally, the company offers warehousing, logistics, procurement, research and development, consulting, and software development and information technology support services. Vipshop Holdings Limited was founded in 2008 and is headquartered in Guangzhou, the People's Republic of China.

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