Victoria’s Secret & Co. (NYSE:VSXY) versus Valvoline (NYSE:VVV) Head-To-Head Contrast

Valvoline (NYSE:VVV) and Victoria’s Secret & Co. (NYSE:VSXY) are both mid-cap consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, profitability, institutional ownership, earnings and valuation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Valvoline	5.17%	65.12%	7.11%
Victoria’s Secret & Co.	5.46%	40.43%	7.04%

Earnings and Valuation

This table compares Valvoline and Victoria’s Secret & Co.”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Valvoline	$1.71 billion	2.41	$210.70 million	$0.80	40.34
Victoria’s Secret & Co.	$6.55 billion	1.18	$161.00 million	$3.45	28.04

Valvoline has higher earnings, but lower revenue than Victoria’s Secret & Co.. Victoria’s Secret & Co. is trading at a lower price-to-earnings ratio than Valvoline, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Valvoline has a beta of 1.03, indicating that its share price is 3% more volatile than the S&P 500. Comparatively, Victoria’s Secret & Co. has a beta of 2.01, indicating that its share price is 101% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for Valvoline and Victoria’s Secret & Co., as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Valvoline	0	5	13	0	2.72
Victoria’s Secret & Co.	0	7	8	0	2.53

Valvoline currently has a consensus price target of $41.17, indicating a potential upside of 27.57%. Victoria’s Secret & Co. has a consensus price target of $92.00, indicating a potential downside of 4.89%. Given Valvoline’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Valvoline is more favorable than Victoria’s Secret & Co..

Insider and Institutional Ownership

96.1% of Valvoline shares are held by institutional investors. Comparatively, 90.3% of Victoria’s Secret & Co. shares are held by institutional investors. 0.7% of Valvoline shares are held by company insiders. Comparatively, 0.5% of Victoria’s Secret & Co. shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Valvoline beats Victoria’s Secret & Co. on 10 of the 14 factors compared between the two stocks.

About Valvoline

Valvoline Inc. engages in the operation and franchising of vehicle service centers and retail stores in the United States and Canada. The company, through its service centers, provides fluid exchange for motor oil, transmission and differential fluid, and coolant; parts replacement for batteries, filters, wiper blades, and belts; and safety services, such as tire inflation and rotation, bulbs, and safety checks. It offers its services for passenger cars, hybrid and battery electric vehicles, and light and medium duty vehicles. The company was founded in 1866 and is headquartered in Lexington, Kentucky.

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.