Comparing Francesca’s (FRAN) and Vince (VNCE)

Francesca’s (NASDAQ: FRAN) and Vince (NYSE:VNCE) are both small-cap consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, analyst recommendations, dividends, institutional ownership and profitability.

Insider & Institutional Ownership

Get Francesca’s alerts:

98.1% of Francesca’s shares are held by institutional investors. Comparatively, 3.5% of Vince shares are held by institutional investors. 1.2% of Francesca’s shares are held by insiders. Comparatively, 74.0% of Vince shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and target prices for Francesca’s and Vince, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Francesca’s 0 5 1 0 2.17
Vince 0 0 0 0 N/A

Francesca’s presently has a consensus price target of $6.75, suggesting a potential upside of 17.80%. Given Francesca’s’ higher possible upside, analysts clearly believe Francesca’s is more favorable than Vince.

Profitability

This table compares Francesca’s and Vince’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Francesca’s 3.30% 16.52% 9.72%
Vince 21.50% -387.17% -7.66%

Valuation & Earnings

This table compares Francesca’s and Vince’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Francesca’s $471.68 million 0.42 $15.56 million $0.52 11.02
Vince $272.58 million 0.38 $58.59 million N/A N/A

Vince has lower revenue, but higher earnings than Francesca’s.

Summary

Francesca’s beats Vince on 7 of the 10 factors compared between the two stocks.

Francesca’s Company Profile

Francesca's Holdings Corporation, through its subsidiaries, operates a chain of retail boutiques. It offers fashion apparel, jewelry, accessories, and gifts primarily for women between the ages of 18 and 35. The company's apparel products comprise dresses, fashion tops, sweaters, cardigans and wraps, bottoms, outerwear and jackets, tees and tanks, and intimates; and jewelry includes necklaces, earrings, bracelets, and rings. Its accessories consist of handbags, clutches, wallets, shoes, belts, hats, scarves, sunglasses, watches, and hair accessories; and gifts include fragrances, candles, bath and body products, home accessories, books, wall art, nail polish, and miscellaneous items. As of March 27, 2018, the company operated 721 boutiques in 47 states and the District of Columbia. The company also sells products through its Website at francescas.com. Francesca's Holdings Corporation was founded in 1999 and is headquartered in Houston, Texas.

Vince Company Profile

Vince Holding Corp. engages in the design, merchandise, and sale of various luxury brand products in the United States and internationally. It operates through two segments, Wholesale and Direct-To-Consumer. The company offers a range of women's products, such as cashmere sweaters, silk blouses, leather and suede leggings and jackets, dresses, denims, pants, tanks, T-shirts, handbags, and outerwear under the Vince brand; and men's products comprising T-shirts, knit and woven tops, sweaters, denim, pants, blazers, outerwear, and leather jackets under the Vince brand. It also provides women's and men's footwear, apparel, and accessories. The company sells its products directly to consumers through its branded specialty retail stores and outlet stores, as well as through Vince.com, an e-commerce platform; and to department stores and specialty stores. As of January 28, 2017, it operated 54 stores, including 40 company-operated full price retail stores and 14 company-operated outlet stores, as well as VINCE.com and e-commerce sites; and sold its products to consumers at approximately 2,300 distribution locations in 40 countries. The company was formerly known as Apparel Holding Corp. and changed its name to Vince Holding Corp. in November 2013. Vince Holding Corp. was founded in 2002 and is based in New York, New York.