Stitch Fix (NASDAQ:SFIX – Get Free Report) and Barnes & Noble Education (NYSE:BNED – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, valuation, profitability, analyst recommendations, earnings, institutional ownership and dividends.
Institutional and Insider Ownership
71.0% of Stitch Fix shares are owned by institutional investors. Comparatively, 38.5% of Barnes & Noble Education shares are owned by institutional investors. 16.1% of Stitch Fix shares are owned by insiders. Comparatively, 1.2% of Barnes & Noble Education 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.
Earnings and Valuation
This table compares Stitch Fix and Barnes & Noble Education”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Stitch Fix | $1.27 billion | 0.37 | -$28.74 million | ($0.08) | -44.38 |
| Barnes & Noble Education | $1.71 billion | 0.24 | $16.87 million | $0.47 | 25.66 |
Barnes & Noble Education has higher revenue and earnings than Stitch Fix. Stitch Fix is trading at a lower price-to-earnings ratio than Barnes & Noble Education, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent ratings and recommmendations for Stitch Fix and Barnes & Noble Education, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Stitch Fix | 1 | 4 | 1 | 0 | 2.00 |
| Barnes & Noble Education | 1 | 1 | 2 | 0 | 2.25 |
Stitch Fix currently has a consensus price target of $5.12, suggesting a potential upside of 44.37%. Barnes & Noble Education has a consensus price target of $17.25, suggesting a potential upside of 43.03%. Given Stitch Fix’s higher probable upside, research analysts clearly believe Stitch Fix is more favorable than Barnes & Noble Education.
Profitability
This table compares Stitch Fix and Barnes & Noble Education’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% |
| Barnes & Noble Education | 0.98% | 7.92% | 2.29% |
Volatility and Risk
Stitch Fix has a beta of 2.26, indicating that its stock price is 126% more volatile than the S&P 500. Comparatively, Barnes & Noble Education has a beta of 1.27, indicating that its stock price is 27% more volatile than the S&P 500.
Summary
Barnes & Noble Education 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 Barnes & Noble Education
Barnes and Noble Education, Inc. engages in the management and operation of bookstore chains in universities. It operates through the Retail and Wholesale segments. The Retail segment operates college, university, and K-12 school bookstores, physical bookstores, and virtual bookstores. The Wholesale segment sells and distributes new and used textbooks to physical bookstores. The company was founded by Leonard S, Riggio in 1965 and is headquartered in Basking Ridge, NJ.
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