Contrasting Farfetch (NYSE:FTCH) and Capita (OTCMKTS:CTAGY)

Farfetch (NYSE:FTCHGet Rating) and Capita (OTCMKTS:CTAGYGet Rating) are both retail/wholesale companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, earnings and analyst recommendations.

Earnings and Valuation

This table compares Farfetch and Capita’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Farfetch $2.26 billion 1.59 $1.47 billion ($1.07) -8.78
Capita $4.38 billion 0.12 $308.98 million N/A N/A

Farfetch has higher earnings, but lower revenue than Capita.

Institutional and Insider Ownership

81.4% of Farfetch shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Farfetch and Capita’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Farfetch 64.79% -331.09% 41.12%
Capita N/A N/A N/A

Analyst Ratings

This is a summary of recent ratings and recommmendations for Farfetch and Capita, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Farfetch 0 1 12 0 2.92
Capita 0 0 1 0 3.00

Farfetch presently has a consensus price target of $38.69, indicating a potential upside of 311.62%. Given Farfetch’s higher probable upside, equities analysts plainly believe Farfetch is more favorable than Capita.

Volatility & Risk

Farfetch has a beta of 3.13, suggesting that its share price is 213% more volatile than the S&P 500. Comparatively, Capita has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500.

Summary

Farfetch beats Capita on 8 of the 11 factors compared between the two stocks.

About Farfetch (Get Rating)

Farfetch Ltd. engages in the retail of fashion and luxury goods. It offers womenswear, menswear, kidswear, vintage, fine watches, and fine jewelry. The company was founded by José Manuel Ferreira Neves in 2007 and launched in 2008 and is headquartered in London, the United Kingdom.

About Capita (Get Rating)

Capita plc provides consulting, digital, and software products and services to clients in the private and public sectors. It operates through six divisions: Software, People Solutions, Customer Management, Government Services, Technology Solutions, and Specialist Services. The company offers application software and other solutions, such as automation, critical communication system, finance and payment, management information system, workforce management, and education software products and services; and people solutions, including human resources advisory and digitally enabled services comprising learning, resourcing, pensions, and HR outsourcing services. It also provides customer management services, such as customer engagement, remediation, complaints management, collections, and regulated services; and services related to central and local governments. In addition, the company offers technology solutions, including digital IT and connectivity, network, Trustmarque, intelligent communications, cloud, cyber security, robotic process automation, and workplace IT services; and specialist services, such as travel and event, enforcement, insurance, Evolvi, real estate and infrastructure, GL hearn, Page One, Tascor, Optima, and translation and interpreting services. Further, it provides business operations, customer experience, industry-specific, and education services, as well as various digital solutions. The company offers its services to financial services, pensions, retail, telecoms and media, transport, energy and utilities, central and local government, education, defense and security, health and welfare, and justice and emergency services sectors. It operates in the United Kingdom, Ireland, Europe, the United States, India, South Africa, and the United Arab Emirates. The company was formerly known as The Capita Group plc and changed its name to Capita plc in January 2012. Capita plc was founded in 1984 and is based in London, the United Kingdom.

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