Stitch Fix (NASDAQ:SFIX – Get Rating) and Velocity Acquisition (NASDAQ:VELO – Get Rating) are both small-cap retail/wholesale companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, risk, earnings, profitability and institutional ownership.
Volatility & Risk
Stitch Fix has a beta of 1.74, suggesting that its stock price is 74% more volatile than the S&P 500. Comparatively, Velocity Acquisition has a beta of 0.01, suggesting that its stock price is 99% less volatile than the S&P 500.
This is a summary of recent ratings and recommmendations for Stitch Fix and Velocity Acquisition, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Stitch Fix presently has a consensus target price of $14.89, suggesting a potential upside of 137.56%. Given Stitch Fix’s higher probable upside, research analysts clearly believe Stitch Fix is more favorable than Velocity Acquisition.
Valuation & Earnings
This table compares Stitch Fix and Velocity Acquisition’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Stitch Fix||$2.10 billion||0.32||-$8.88 million||($0.29)||-21.62|
|Velocity Acquisition||N/A||N/A||$10.20 million||N/A||N/A|
Velocity Acquisition has lower revenue, but higher earnings than Stitch Fix.
Insider and Institutional Ownership
70.5% of Stitch Fix shares are owned by institutional investors. Comparatively, 73.9% of Velocity Acquisition shares are owned by institutional investors. 27.0% of Stitch Fix shares are owned by company 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.
This table compares Stitch Fix and Velocity Acquisition’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Stitch Fix beats Velocity Acquisition on 6 of the 10 factors compared between the two stocks.
Stitch Fix Company Profile (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.
Velocity Acquisition Company Profile (Get Rating)
Velocity Acquisition Corp. does not have significant operations. It intends to effect a merger, stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses in digital transformation businesses. The company was incorporated in 2020 and is based in Ridgefield, Connecticut.
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