Head-To-Head Review: Virgin Group Acquisition Corp. II (NYSE:VGII) and Stitch Fix (NASDAQ:SFIX)

Virgin Group Acquisition Corp. II (NYSE:VGIIGet Rating) and Stitch Fix (NASDAQ:SFIXGet Rating) are both small-cap consumer staples companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.

Profitability

This table compares Virgin Group Acquisition Corp. II and Stitch Fix’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Virgin Group Acquisition Corp. II N/A -22.81% 0.69%
Stitch Fix -1.37% -6.58% -3.46%

Institutional & Insider Ownership

93.4% of Virgin Group Acquisition Corp. II shares are held by institutional investors. Comparatively, 70.5% of Stitch Fix shares are held by institutional investors. 27.0% of Stitch Fix shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for Virgin Group Acquisition Corp. II and Stitch Fix, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Virgin Group Acquisition Corp. II 0 0 0 0 N/A
Stitch Fix 2 15 1 0 1.94

Stitch Fix has a consensus target price of $16.94, suggesting a potential upside of 105.89%. Given Stitch Fix’s higher possible upside, analysts clearly believe Stitch Fix is more favorable than Virgin Group Acquisition Corp. II.

Earnings and Valuation

This table compares Virgin Group Acquisition Corp. II and Stitch Fix’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Virgin Group Acquisition Corp. II N/A N/A $2.70 million N/A N/A
Stitch Fix $2.10 billion 0.43 -$8.88 million ($0.29) -28.38

Virgin Group Acquisition Corp. II has higher earnings, but lower revenue than Stitch Fix.

Summary

Stitch Fix beats Virgin Group Acquisition Corp. II on 5 of the 9 factors compared between the two stocks.

About Virgin Group Acquisition Corp. II (Get Rating)

Virgin Group Acquisition Corp. II does not have significant operations. It focuses on effecting a merger, amalgamation, share exchange, asset acquisition, share purchase, reorganization, or other similar business combination with one or more businesses. Virgin Group Acquisition Corp. II was incorporated in 2021 and is based in New York, New York.

About Stitch Fix (Get Rating)

Stitch Fix, Inc. sells a range of apparel, shoes, and accessories through its Website and mobile application in the United States. It offers denim, dresses, blouses, skirts, shoes, jewelry, and handbags for men, women, and kids 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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