Stitch Fix (NASDAQ:SFIX – Get Free Report) and Urban Outfitters (NASDAQ:URBN – Get Free Report) are both retail/wholesale companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, valuation, profitability, institutional ownership, dividends and analyst recommendations.
Insider and Institutional Ownership
71.0% of Stitch Fix shares are owned by institutional investors. Comparatively, 77.6% of Urban Outfitters shares are owned by institutional investors. 16.1% of Stitch Fix shares are owned by insiders. Comparatively, 32.1% of Urban Outfitters shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Earnings & Valuation
This table compares Stitch Fix and Urban Outfitters”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Stitch Fix | $1.27 billion | 0.40 | -$28.74 million | ($0.08) | -47.38 |
| Urban Outfitters | $6.32 billion | 0.99 | $464.92 million | $5.21 | 14.01 |
Urban Outfitters has higher revenue and earnings than Stitch Fix. Stitch Fix is trading at a lower price-to-earnings ratio than Urban Outfitters, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Stitch Fix has a beta of 2.26, indicating that its stock price is 126% more volatile than the S&P 500. Comparatively, Urban Outfitters has a beta of 1.22, indicating that its stock price is 22% more volatile than the S&P 500.
Profitability
This table compares Stitch Fix and Urban Outfitters’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Stitch Fix | -1.43% | -9.35% | -3.78% |
| Urban Outfitters | 7.48% | 18.92% | 10.45% |
Analyst Ratings
This is a summary of recent ratings and recommmendations for Stitch Fix and Urban Outfitters, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Stitch Fix | 1 | 4 | 1 | 0 | 2.00 |
| Urban Outfitters | 0 | 6 | 7 | 1 | 2.64 |
Stitch Fix currently has a consensus target price of $5.12, suggesting a potential upside of 35.22%. Urban Outfitters has a consensus target price of $87.00, suggesting a potential upside of 19.21%. Given Stitch Fix’s higher probable upside, equities research analysts clearly believe Stitch Fix is more favorable than Urban Outfitters.
Summary
Urban Outfitters 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 Urban Outfitters
Urban Outfitters, Inc. engages in the retail and wholesale of general consumer products. The company operates through three segments: Retail, Wholesale, and Nuuly. It operates Urban Outfitters stores, which offer women's and men's fashion apparel, activewear, intimates, footwear, accessories, home goods, electronics, and beauty products for young adults aged 18 to 28; and Anthropologie stores that provide women's apparel, accessories, intimates, shoes, and home furnishings, as well as gifts, decorative items, and beauty and wellness products for women aged 28 to 45. The company also operates Terrain stores that provide lifestyle home products, garden and outdoor living products, antiques, live plants, flowers, wellness products, and accessories. In addition, it operates Free People retail stores, which offer casual women's apparel, intimates, activewear, shoes, accessories, home products, gifts, and beauty and wellness products for young women aged 25 to 30; and restaurants, as well as women's apparel subscription rental service under the Nuuly brand. Further, the company is involved in the wholesale of young women's contemporary casual apparel, intimates, activewear, and shoes under the Free People brand; and apparel collections under the Urban Outfitters brand. The company serves its customers directly through retail stores, websites, mobile applications, catalogs and customer contact centers, franchisee-owned stores, and department and specialty stores, as well as social media and third-party digital platforms. Urban Outfitters, Inc. was founded in 1970 and is based in Philadelphia, Pennsylvania.
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