Head-To-Head Contrast: Stitch Fix (NASDAQ:SFIX) and Asos Pls (OTCMKTS:ASOMY)

Asos Pls (OTCMKTS:ASOMY) and Stitch Fix (NASDAQ:SFIX) 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 dividends, valuation, risk, analyst recommendations, institutional ownership, earnings and profitability.

Valuation and Earnings

This table compares Asos Pls and Stitch Fix”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Asos Pls	$3.23 billion	0.17	-$388.99 million	N/A	N/A
Stitch Fix	$1.27 billion	0.40	-$28.74 million	($0.08)	-47.38

Stitch Fix has lower revenue, but higher earnings than Asos Pls.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Asos Pls and Stitch Fix, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Asos Pls	0	0	0	2	4.00
Stitch Fix	1	4	1	0	2.00

Stitch Fix has a consensus price target of $5.12, indicating a potential upside of 35.22%. Given Stitch Fix’s higher probable upside, analysts clearly believe Stitch Fix is more favorable than Asos Pls.

Insider & Institutional Ownership

71.0% of Stitch Fix shares are held by institutional investors. 16.1% of Stitch Fix shares are held by 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.

Profitability

This table compares Asos Pls and Stitch Fix’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Asos Pls	N/A	N/A	N/A
Stitch Fix	-1.43%	-9.35%	-3.78%

Volatility & Risk

Asos Pls has a beta of 2.23, meaning that its share price is 123% more volatile than the S&P 500. Comparatively, Stitch Fix has a beta of 2.26, meaning that its share price is 126% more volatile than the S&P 500.

Summary

Stitch Fix beats Asos Pls on 7 of the 13 factors compared between the two stocks.

About Asos Pls

ASOS Plc operates as an online fashion retailer in the United Kingdom, the United States, Australia, France, Germany, Spain, Italy, Sweden, the Netherlands, Denmark, Poland, and internationally. It offers womenswear and menswear products. The company sells its products under the ASOS Design, ASOS Edition, ASOS Luxe, ASOS 4505, Collusion, Reclaimed Vintage, Topshop, Topman, Miss Selfridge, HIIT, AsYou, Dark Future, UNRVLLD/SPPLY, Crooked Tongues, Daysocial, Actual, and Weekend Collective brands, as well as through third-party brands. It is also involved in the employer of marketing staff and payment processing businesses, as well as acts as a vehicle for issue of convertible bonds. ASOS Plc was incorporated in 2000 and is headquartered in London, the United Kingdom.

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.