Zumiez (NASDAQ:ZUMZ – Get Free Report) and Stitch Fix (NASDAQ:SFIX – Get Free Report) are both small-cap retail/wholesale companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, risk, valuation, earnings and dividends.
Institutional & Insider Ownership
95.4% of Zumiez shares are owned by institutional investors. Comparatively, 71.0% of Stitch Fix shares are owned by institutional investors. 21.2% of Zumiez shares are owned by company insiders. Comparatively, 16.1% of Stitch Fix shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Analyst Recommendations
This is a summary of current ratings for Zumiez and Stitch Fix, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Zumiez | 1 | 2 | 0 | 0 | 1.67 |
| Stitch Fix | 1 | 4 | 1 | 1 | 2.29 |
Profitability
This table compares Zumiez and Stitch Fix’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Zumiez | 0.06% | 0.19% | 0.09% |
| Stitch Fix | -2.27% | -14.57% | -5.93% |
Volatility and Risk
Zumiez has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500. Comparatively, Stitch Fix has a beta of 2.22, meaning that its share price is 122% more volatile than the S&P 500.
Valuation & Earnings
This table compares Zumiez and Stitch Fix”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Zumiez | $900.25 million | 0.50 | -$1.71 million | ($0.01) | -2,647.00 |
| Stitch Fix | $1.27 billion | 0.45 | -$28.74 million | ($0.46) | -9.33 |
Zumiez has higher earnings, but lower revenue than Stitch Fix. Zumiez is trading at a lower price-to-earnings ratio than Stitch Fix, indicating that it is currently the more affordable of the two stocks.
Summary
Zumiez beats Stitch Fix on 8 of the 15 factors compared between the two stocks.
About Zumiez
Zumiez Inc. operates as a specialty retailer of apparel, footwear, accessories, and hardgoods for young men and women. The company provides hardgoods, including skateboards, snowboards, bindings, components, and other equipment. It operates stores in the United States, Canada, Europe, and Australia under the names of Zumiez, Blue Tomato, and Fast Times. It operates zumiez.com, zumiez.ca, blue-tomato.com, and fasttimes.com.au e-commerce websites. Zumiez Inc. was founded in 1978 and is headquartered in Lynnwood, Washington.
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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