Financial Survey: Zuoan Fashion (OTCMKTS:ZAHLY) and V.F. (NYSE:VFC)

V.F. (NYSE:VFC) and Zuoan Fashion (OTCMKTS:ZAHLY) are both consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, earnings, dividends, valuation and profitability.

Institutional and Insider Ownership

86.8% of V.F. shares are owned by institutional investors. 1.5% of V.F. shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares V.F. and Zuoan Fashion’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
V.F.	2.88%	18.91%	3.26%
Zuoan Fashion	N/A	N/A	N/A

Earnings & Valuation

This table compares V.F. and Zuoan Fashion”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
V.F.	$9.61 billion	0.57	$254.92 million	$0.69	20.09
Zuoan Fashion	N/A	N/A	N/A	N/A	N/A

V.F. has higher revenue and earnings than Zuoan Fashion.

Analyst Recommendations

This is a breakdown of current ratings for V.F. and Zuoan Fashion, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
V.F.	2	12	3	2	2.26
Zuoan Fashion	0	0	0	0	0.00

V.F. presently has a consensus target price of $18.21, suggesting a potential upside of 31.31%. Given V.F.’s stronger consensus rating and higher probable upside, analysts clearly believe V.F. is more favorable than Zuoan Fashion.

Summary

V.F. beats Zuoan Fashion on 10 of the 10 factors compared between the two stocks.

About V.F.

VF Corp. engages in the business of producing and marketing apparel, footwear, and accessories. It operates through the following segments: Outdoor, Active, Work, and Other. The Outdoor segment includes authentic outdoor-based lifestyle brands such as performance-based and outdoor apparel, footwear, and equipment. The Active segment focuses on activity-based lifestyle brands including active apparel, footwear, backpacks, luggage, and accessories. The Work segment offers work and work-inspired lifestyle brands with product offerings including apparel, footwear, and accessories. The Other segment refers to the sale of non-VF products and sourcing activities related to transition services. The company was founded by John Barbey in October 1899 and is headquartered in Denver, CO.

About Zuoan Fashion

Zuoan Fashion Limited is a casual menswear company. The Company’s products are designed in-house and sold under the Zuoan brand. The Company offers a range of products, including men’s casual apparel, footwear and lifestyle accessories, primarily targeting urban males between the ages of 20 and 40. The Company’s apparel products include blazers, jackets, sweaters, shirts, T-shirts, leather jackets, down jackets, pants and jeans. The Company’s accessories include shoes, bags, ties, belts, socks and scarves. The Company sells its products through a distribution network covering 30 of China’s 32 provinces and centrally administered municipalities, as well as through its direct stores. The Company’s products are primarily sold to customers through retail stores operated by its distributors and their sub-distributors.