Stitch Fix (NASDAQ:SFIX – Get Free Report) and Asbury Automotive Group (NYSE:ABG – Get Free Report) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, earnings, risk, institutional ownership, profitability, analyst recommendations and valuation.
Volatility and Risk
Stitch Fix has a beta of 2.26, suggesting that its stock price is 126% more volatile than the S&P 500. Comparatively, Asbury Automotive Group has a beta of 0.71, suggesting that its stock price is 29% less volatile than the S&P 500.
Earnings & Valuation
This table compares Stitch Fix and Asbury Automotive Group”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Stitch Fix | $1.33 billion | 0.40 | -$28.74 million | ($0.08) | -49.69 |
| Asbury Automotive Group | $18.00 billion | 0.22 | $492.00 million | $26.74 | 8.14 |
Asbury Automotive Group has higher revenue and earnings than Stitch Fix. Stitch Fix is trading at a lower price-to-earnings ratio than Asbury Automotive Group, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Stitch Fix and Asbury Automotive Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Stitch Fix | -1.43% | -9.35% | -3.78% |
| Asbury Automotive Group | 2.83% | 12.72% | 4.31% |
Analyst Ratings
This is a summary of current ratings and price targets for Stitch Fix and Asbury Automotive Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Stitch Fix | 1 | 4 | 1 | 0 | 2.00 |
| Asbury Automotive Group | 1 | 6 | 2 | 0 | 2.11 |
Stitch Fix presently has a consensus target price of $5.12, suggesting a potential upside of 28.93%. Asbury Automotive Group has a consensus target price of $245.29, suggesting a potential upside of 12.70%. Given Stitch Fix’s higher possible upside, analysts plainly believe Stitch Fix is more favorable than Asbury Automotive Group.
Insider and Institutional Ownership
71.0% of Stitch Fix shares are held by institutional investors. 16.1% of Stitch Fix shares are held by insiders. Comparatively, 0.7% of Asbury Automotive Group shares are held by 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
Asbury Automotive Group beats Stitch Fix on 9 of the 14 factors compared between the two stocks.
About Stitch Fix
Stitch Fix, Inc. sells a range of apparel, shoes, and accessories for men, women, and kids through its website and mobile application in the United States and the United Kingdom. It offers denim, dresses, blouses, skirts, shoes, jewelry, and handbags under the Stitch Fix brand. The company was formerly known as rack habit inc. and changed its name to Stitch Fix, Inc. in October 2011. Stitch Fix, Inc. was incorporated in 2011 and is headquartered in San Francisco, California.
About Asbury Automotive Group
Asbury Automotive Group, Inc., together with its subsidiaries, operates as an automotive retailer in the United States. It offers a range of automotive products and services, including new and used vehicles; and vehicle repair and maintenance services, replacement parts, and collision repair services. The company also provides finance and insurance products, including arranging vehicle financing through third parties; and aftermarket products, such as extended service contracts, guaranteed asset protection debt cancellation, prepaid maintenance, and disability and accident insurance. Asbury Automotive Group, Inc. was founded in 1996 and is based in Duluth, Georgia.
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