Comparing Stitch Fix (SFIX) and Its Competitors

Stitch Fix (NASDAQ:SFIX) is one of 285 publicly-traded companies in the “Specialty Retail” industry, but how does it weigh in compared to its competitors? We will compare Stitch Fix to similar businesses based on the strength of its analyst recommendations, earnings, valuation, risk, institutional ownership, profitability and dividends.

Institutional and Insider Ownership

71.0% of Stitch Fix shares are held by institutional investors. Comparatively, 51.9% of shares of all “Specialty Retail” companies are held by institutional investors. 18.4% of Stitch Fix shares are held by company insiders. Comparatively, 20.5% of shares of all “Specialty Retail” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

Stitch Fix has a beta of 2.45, meaning that its share price is 145% more volatile than the S&P 500. Comparatively, Stitch Fix’s competitors have a beta of 1.91, meaning that their average share price is 91% more volatile than the S&P 500.

Valuation & Earnings

This table compares Stitch Fix and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Stitch Fix	$1.35 billion	-$12.61 million	-28.35
Stitch Fix Competitors	$7.05 billion	$386.47 million	31.06

Stitch Fix’s competitors have higher revenue and earnings than Stitch Fix. Stitch Fix is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a summary of current ratings and target prices for Stitch Fix and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stitch Fix	1	6	1	0	2.00
Stitch Fix Competitors	3678	15610	21633	590	2.46

Stitch Fix presently has a consensus price target of $3.40, suggesting a potential upside of 19.93%. As a group, “Specialty Retail” companies have a potential upside of 6.23%. Given Stitch Fix’s higher possible upside, equities analysts clearly believe Stitch Fix is more favorable than its competitors.

Profitability

This table compares Stitch Fix and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Stitch Fix	-0.94%	-5.75%	-2.30%
Stitch Fix Competitors	-3.69%	-14.02%	3.17%

Summary

Stitch Fix competitors beat Stitch Fix on 8 of the 13 factors compared.

Stitch Fix Company Profile

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.