Stitch Fix (NASDAQ:SFIX – Get Free Report) and Woolworths (OTCMKTS:WLWHY – Get Free Report) are both retail/wholesale companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, earnings, valuation, institutional ownership, risk and dividends.
Profitability
This table compares Stitch Fix and Woolworths’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Stitch Fix | -2.23% | -14.38% | -5.88% |
| Woolworths | N/A | N/A | N/A |
Institutional & Insider 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 endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Stitch Fix | $1.27 billion | 0.51 | -$28.74 million | ($0.16) | -30.00 |
| Woolworths | $4.42 billion | 0.80 | $134.61 million | N/A | N/A |
Woolworths has higher revenue and earnings than Stitch Fix.
Volatility and Risk
Stitch Fix has a beta of 2.1, suggesting that its share price is 110% more volatile than the S&P 500. Comparatively, Woolworths has a beta of 0.34, suggesting that its share price is 66% less volatile than the S&P 500.
Analyst Ratings
This is a summary of current recommendations and price targets for Stitch Fix and Woolworths, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Stitch Fix | 1 | 4 | 1 | 0 | 2.00 |
| Woolworths | 0 | 0 | 0 | 1 | 4.00 |
Stitch Fix presently has a consensus target price of $6.00, suggesting a potential upside of 25.00%. Given Stitch Fix’s higher probable upside, analysts clearly believe Stitch Fix is more favorable than Woolworths.
Summary
Woolworths beats Stitch Fix on 8 of the 13 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 Woolworths
Woolworths Holdings Limited, through its subsidiaries, operates a chain of retail stores in South Africa, Australia, and New Zealand. It operates through seven segments: Woolworths Fashion, Beauty and Home; Woolworths Food; Woolworths Financial Services; Woolworths Logistics; Country Road Group; and Treasury. The company provides food, clothing, homeware, beauty, and various lifestyle products. It offers financial products and services, such as store cards, credit cards, personal loans, and other financial products. The company is also involved in the cash and debt management activities. Woolworths Holdings Limited was incorporated in 1929 and is based in Cape Town, South Africa.
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