Designer Brands Inc. (DBI) vs Vera Bradley, Inc. (VRA)

Designer Brands Inc. and Vera Bradley, Inc. are both Footwear & Accessories companies. Designer Brands Inc. is the larger, with a market value of $324.1M against $116.8M — 2.8× the size. Vera Bradley, Inc. has negative trailing earnings, so its P/E is not meaningful; Designer Brands Inc. trades at 21.9×. Designer Brands Inc. grew revenue faster over the last twelve months: −0.84% against −1.74%. Designer Brands Inc. has the higher net margin (0.61% vs −3.66%) and the higher return on invested capital (9.58% vs −6.33%). Across the 19 metrics below, Designer Brands Inc. leads on 12 and Vera Bradley, Inc. on 7.

Valuation

Metric DBI VRA Footwear & Accessories median
P/E 21.89 n/m 15.26
P/S 0.11 0.42 1.16
P/B 1.04 0.87 2.59
Price to free cash flow n/m 3.92 12.20
EV/EBITDA 4.25 6.37 8.91
EV/Sales 0.24 0.40 1.24
Earnings yield 4.57% (8.74%) 6.11%
Free cash flow yield (27.30%) 25.50% 4.85%

Profitability

Metric DBI VRA Footwear & Accessories median
Gross margin 45.77% 50.43% 49.76%
Operating margin 3.56% (3.62%) 8.44%
Net margin 0.61% (3.66%) 5.64%
Free cash flow margin 4.15% 10.69% 8.18%
Return on equity 6.10% (7.36%) 12.45%
Return on assets 0.87% (3.97%) 6.15%
Return on invested capital 9.58% (6.33%) 9.58%

Growth

Metric DBI VRA Footwear & Accessories median
Revenue growth (TTM) (0.84%) (1.74%) 3.68%
EPS growth (last fiscal year) 15.00% 20.47% —
Revenue growth, 5-year CAGR 5.30% (10.45%) 7.17%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric DBI VRA Footwear & Accessories median
Debt to equity 1.41 0.00 0.46
Current ratio 1.22 2.44 1.96
Net debt to EBITDA 3.59 4.72 1.00

Dividend

Metric DBI VRA Footwear & Accessories median
Dividend yield 2.11% — 2.20%
Payout ratio 0.10 0.00 0.00

Size

Metric DBI VRA Footwear & Accessories median
Market cap 324.13m 116.76m 614.40m

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