Comparing MOGU (NYSE:MOGU) and Victoria’s Secret & Co. (NYSE:VSCO)

Victoria’s Secret & Co. (NYSE:VSCO) and MOGU (NYSE:MOGU) are both retail/wholesale companies, but which is the better stock? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, profitability, institutional ownership and earnings.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Victoria’s Secret & Co.	$6.23 billion	0.45	$165.00 million	$1.80	19.44
MOGU	$19.46 million	1.08	-$8.62 million	N/A	N/A

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Victoria’s Secret & Co.	2.42%	33.77%	4.49%
MOGU	N/A	N/A	N/A

Volatility and Risk

Victoria’s Secret & Co. has a beta of 2.26, suggesting that its share price is 126% more volatile than the S&P 500. Comparatively, MOGU has a beta of 0.31, suggesting that its share price is 69% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Victoria’s Secret & Co. and MOGU, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Victoria’s Secret & Co.	3	7	4	0	2.07
MOGU	1	0	0	0	1.00

Victoria’s Secret & Co. presently has a consensus price target of $29.91, indicating a potential downside of 14.51%. Given Victoria’s Secret & Co.’s stronger consensus rating and higher possible upside, research analysts clearly believe Victoria’s Secret & Co. is more favorable than MOGU.

Insider & Institutional Ownership

90.3% of Victoria’s Secret & Co. shares are owned by institutional investors. Comparatively, 19.1% of MOGU shares are owned by institutional investors. 0.5% of Victoria’s Secret & Co. shares are owned by company insiders. Comparatively, 19.8% of MOGU shares are owned by company 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.

Summary

Victoria’s Secret & Co. beats MOGU on 10 of the 12 factors compared between the two stocks.

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.

About MOGU

MOGU Inc., through its subsidiaries, engages in the online fashion and lifestyle business in the People's Republic of China. The company operates an online platform that primarily offers a range of fashion apparel and other products, including beauty products and accessories provided by third party merchants, as well as personal care, food, and medical beauty products. It also provides online marketing, commission, financing, technology, and other related services to merchants, brand partners/owners, and users; and technology services to insurance companies. The company offers its products through mobile apps, including flagship Mogujie app, mini programs on Weixin, and Weixin pay; websites comprising Mogu.com, Mogujie.com and Meilishuo.com. The company was formerly known as Meili Inc. and changed its name to MOGU Inc. in November 2018. The company was incorporated in 2011 and is headquartered in Hangzhou, the People's Republic of China.