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

Valuation & Earnings

This table compares Stitch Fix and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Stitch Fix	$1.35 billion	-$12.61 million	-27.40
Stitch Fix Competitors	$7.06 billion	$386.47 million	29.92

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

Profitability

This table compares Stitch Fix and its peers’ 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	-3.62%	-13.67%	3.21%

Volatility & Risk

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

Analyst Ratings

This is a summary of current ratings and recommmendations for Stitch Fix and its peers, 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	3675	15594	21618	590	2.46

Stitch Fix currently has a consensus price target of $3.40, suggesting a potential upside of 24.09%. As a group, “Specialty Retail” companies have a potential upside of 7.37%. Given Stitch Fix’s higher probable upside, analysts clearly believe Stitch Fix is more favorable than its peers.

Insider and Institutional Ownership

71.0% of Stitch Fix shares are owned by institutional investors. Comparatively, 51.9% of shares of all “Specialty Retail” companies are owned by institutional investors. 16.1% of Stitch Fix shares are owned by insiders. Comparatively, 20.5% of shares of all “Specialty Retail” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

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

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.