Vipshop Holdings Limited (VIPS) vs Wayfair Inc. (W)

Vipshop Holdings Limited and Wayfair Inc. are both Internet Retail companies. Wayfair Inc. is the larger, with a market value of $15.3B against $5.2B — 2.9× the size. Wayfair Inc. has negative trailing earnings, so its P/E is not meaningful; Vipshop Holdings Limited trades at 4.2×. Wayfair Inc. grew revenue faster over the last twelve months: 7.46% against 5.97%. Vipshop Holdings Limited has the higher net margin (9.82% vs −2.49%) and the higher return on invested capital (34.2% vs 0.00%). Across the 20 metrics below, Vipshop Holdings Limited leads on 14 and Wayfair Inc. on 6.

Valuation

Metric VIPS W Internet Retail median
P/E 4.23 n/m 23.78
P/S 0.41 1.14 0.76
P/B 0.99 n/m 1.73
Price to free cash flow 1.60 26.22 14.90
EV/EBITDA 1.20 32.78 18.44
EV/Sales 0.09 1.27 0.81
Earnings yield 23.66% (2.20%) (0.52%)
Free cash flow yield 62.52% 3.81% (0.47%)

Profitability

Metric VIPS W Internet Retail median
Gross margin 23.40% 30.05% 44.12%
Operating margin 7.77% 1.67% 0.76%
Net margin 9.82% (2.49%) 0.56%
Free cash flow margin 0.00% 4.36% 0.00%
Return on equity 0.00% 11.66% 0.00%
Return on assets 13.21% (10.26%) 0.00%
Return on invested capital 34.20% 0.00% 0.00%

Growth

Metric VIPS W Internet Retail median
Revenue growth (TTM) 5.97% 7.46% 10.60%
EPS growth (last fiscal year) 2.54% 39.15% 19.82%
Revenue growth, 5-year CAGR (0.60%) (2.51%) 10.81%
Net income growth, 5-year CAGR 2.73% 0.00% 0.00%

Health

Metric VIPS W Internet Retail median
Debt to equity 0.00 (1.00) 0.10
Current ratio 1.28 0.74 1.52
Net debt to EBITDA (3.01) 5.11 (0.66)

Dividend

Metric VIPS W Internet Retail median
Dividend yield 4.73% — 1.74%
Payout ratio 0.21 — 0.27

Size

Metric VIPS W Internet Retail median
Market cap 5.19b 15.25b 528.20m

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