Analyzing 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 compare to its competitors? We will compare Stitch Fix to similar companies based on the strength of its valuation, dividends, institutional ownership, earnings, risk, profitability and analyst recommendations.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Stitch Fix and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stitch Fix	1	6	1	0	2.00
Stitch Fix Competitors	3663	15559	21598	586	2.46

Stitch Fix currently has a consensus price target of $3.40, indicating a potential upside of 24.31%. As a group, “Specialty Retail” companies have a potential upside of 9.57%. Given Stitch Fix’s higher probable upside, equities research analysts plainly believe Stitch Fix is more favorable than its competitors.

Volatility and Risk

Stitch Fix has a beta of 2.34, suggesting that its share price is 134% more volatile than the S&P 500. Comparatively, Stitch Fix’s competitors have a beta of 1.66, suggesting that their average share price is 66% more volatile than the S&P 500.

Insider and Institutional Ownership

71.0% of Stitch Fix shares are owned by institutional investors. Comparatively, 51.6% of shares of all “Specialty Retail” companies are owned by institutional investors. 16.1% of Stitch Fix shares are owned by company insiders. Comparatively, 20.5% of shares of all “Specialty Retail” companies 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.

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Stitch Fix	$1.35 billion	-$12.61 million	-27.35
Stitch Fix Competitors	$7.30 billion	$386.47 million	32.18

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.

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	-3.67%	-14.10%	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.