Head-To-Head Comparison: Christopher & Banks (OTCMKTS:CBKCQ) & Stitch Fix (NASDAQ:SFIX)

Stitch Fix (NASDAQ:SFIX) and Christopher & Banks (OTCMKTS:CBKCQ) are both retail/wholesale companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.

Insider & Institutional Ownership

71.0% of Stitch Fix shares are owned by institutional investors. 16.1% of Stitch Fix shares are owned by company insiders. Comparatively, 19.8% of Christopher & Banks shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and price targets for Stitch Fix and Christopher & Banks, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stitch Fix	1	4	1	1	2.29
Christopher & Banks	0	0	0	0	0.00

Stitch Fix presently has a consensus target price of $6.00, indicating a potential upside of 27.93%. Given Stitch Fix’s stronger consensus rating and higher possible upside, analysts clearly believe Stitch Fix is more favorable than Christopher & Banks.

Earnings and Valuation

This table compares Stitch Fix and Christopher & Banks”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Stitch Fix	$1.27 billion	0.50	-$28.74 million	($0.46)	-10.20
Christopher & Banks	N/A	N/A	N/A	N/A	N/A

Christopher & Banks has lower revenue, but higher earnings than Stitch Fix.

Volatility & Risk

Stitch Fix has a beta of 2.22, meaning that its stock price is 122% more volatile than the S&P 500. Comparatively, Christopher & Banks has a beta of -6.95, meaning that its stock price is 795% less volatile than the S&P 500.

Profitability

This table compares Stitch Fix and Christopher & Banks’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Stitch Fix	-2.27%	-14.57%	-5.93%
Christopher & Banks	N/A	N/A	N/A

Summary

Stitch Fix beats Christopher & Banks on 7 of the 11 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 Christopher & Banks

Christopher & Banks Corporation, together with its subsidiaries, operates as a specialty retailer of private-brand women's apparel and accessories in the United States. The company designs and sells women's apparel and accessories to customers ranging in age from 50 and older. Its stores offer women's apparel consisting of casual clothing, everyday basics, wear-to-work, leisure/active wear, and sleepwear in missy, petite, and women sizes, as well as jewelry and accessories. It also operates christopherandbanks.com, an e-commerce website for its Christopher & Banks and CJ Banks brands. The company was formerly known as Braun's Fashions Corporation and changed its name to Christopher & Banks Corporation in July 2000. Christopher & Banks Corporation was founded in 1956 and is headquartered in Plymouth, Minnesota. On April 13, 2021, the voluntary petition of Christopher & Banks Corporation for reorganization under Chapter 11 was converted to Chapter 7. It had filed for Chapter 11 bankruptcy on January 13, 2021.