Fossil Group (NASDAQ:FOSL – Get Free Report) and Stitch Fix (NASDAQ:SFIX – Get Free Report) are both small-cap retail/wholesale companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.
Risk and Volatility
Fossil Group has a beta of 1.64, meaning that its share price is 64% more volatile than the S&P 500. Comparatively, Stitch Fix has a beta of 2.33, meaning that its share price is 133% more volatile than the S&P 500.
Earnings and Valuation
This table compares Fossil Group and Stitch Fix”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Fossil Group | $1.00 billion | 0.23 | -$78.30 million | ($1.46) | -2.71 |
| Stitch Fix | $1.27 billion | 0.35 | -$28.74 million | ($0.13) | -24.69 |
Stitch Fix has higher revenue and earnings than Fossil Group. Stitch Fix is trading at a lower price-to-earnings ratio than Fossil Group, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current ratings for Fossil Group and Stitch Fix, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Fossil Group | 1 | 1 | 2 | 0 | 2.25 |
| Stitch Fix | 1 | 4 | 0 | 0 | 1.80 |
Fossil Group presently has a consensus price target of $7.00, suggesting a potential upside of 77.22%. Stitch Fix has a consensus price target of $5.00, suggesting a potential upside of 55.76%. Given Fossil Group’s stronger consensus rating and higher probable upside, equities analysts clearly believe Fossil Group is more favorable than Stitch Fix.
Profitability
This table compares Fossil Group and Stitch Fix’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Fossil Group | -7.81% | -46.78% | -7.42% |
| Stitch Fix | -1.89% | -12.23% | -4.99% |
Insider & Institutional Ownership
61.1% of Fossil Group shares are owned by institutional investors. Comparatively, 71.0% of Stitch Fix shares are owned by institutional investors. 2.9% of Fossil Group shares are owned by insiders. Comparatively, 16.1% of Stitch Fix shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Summary
Stitch Fix beats Fossil Group on 10 of the 14 factors compared between the two stocks.
About Fossil Group
Fossil Group, Inc., together with its subsidiaries, designs, develops, markets, and distributes consumer fashion accessories in the United States, Europe, Asia, and internationally. The company’s products include traditional watches, smartwatches, jewelry, handbags, small leather goods, belts, and sunglasses. It also manufactures and distributes private label brands, as well as branded products purchased for resell in other branded retail stores. The company offers its products under its proprietary brands, such as FOSSIL, SKAGEN, MICHELE, RELIC, and ZODIAC; and under the licensed brands, including ARMANI EXCHANGE, DIESEL, DKNY, EMPORIO ARMANI, KATE SPADE NEW YORK, MICHAEL KORS, TORY BURCH, and Skechers. The company sells its products through company-owned retail and outlet stores, department and specialty retail stores, mass market stores, e-commerce sites, licensed and franchised FOSSIL retail stores, and retail concessions, as well as sells its products on airlines. The company was formerly known as Fossil, Inc. and changed its name to Fossil Group, Inc. in May 2013. Fossil Group, Inc. was founded in 1984 and is headquartered in Richardson, Texas.
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.
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