Stitch Fix (NASDAQ:SFIX – Get Free Report) and ON (NYSE:ONON – Get Free Report) are both retail/wholesale companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, profitability, risk, valuation, dividends and earnings.
Analyst Ratings
This is a breakdown of recent ratings for Stitch Fix and ON, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Stitch Fix | 0 | 4 | 1 | 0 | 2.20 |
| ON | 1 | 1 | 19 | 1 | 2.91 |
Stitch Fix presently has a consensus price target of $5.6667, indicating a potential upside of 10.89%. ON has a consensus price target of $64.20, indicating a potential upside of 38.13%. Given ON’s stronger consensus rating and higher probable upside, analysts plainly believe ON is more favorable than Stitch Fix.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Stitch Fix | $1.34 billion | 0.50 | -$128.84 million | ($0.46) | -11.11 |
| ON | $2.63 billion | 11.11 | $275.23 million | $0.45 | 103.28 |
ON has higher revenue and earnings than Stitch Fix. Stitch Fix is trading at a lower price-to-earnings ratio than ON, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
71.0% of Stitch Fix shares are owned by institutional investors. Comparatively, 36.4% of ON shares are owned by institutional investors. 17.0% of Stitch Fix shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares Stitch Fix and ON’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Stitch Fix | -4.44% | -18.15% | -7.21% |
| ON | 4.45% | 8.75% | 5.10% |
Risk & Volatility
Stitch Fix has a beta of 2.01, suggesting that its share price is 101% more volatile than the S&P 500. Comparatively, ON has a beta of 2.24, suggesting that its share price is 124% more volatile than the S&P 500.
Summary
ON beats Stitch Fix on 13 of the 15 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 ON
On Holding AG engages in the development and distribution of sports products such as footwear, apparel, and accessories for high-performance running, outdoor, all-day activities, and tennis. It sells its products worldwide through independent retailers and global distributors, its own online presence, and its own stores. The company was founded by David Allemann, Olivier Bernhard, and Caspar Coppetti in January 2010 and is headquartered in Zurich, Switzerland.
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