Stitch Fix (NASDAQ:SFIX – Get Free Report) and Genesco (NYSE:GCO – Get Free Report) are both small-cap retail/wholesale companies, but which is the better business? We will compare the two companies based on the strength of their profitability, earnings, valuation, institutional ownership, dividends, analyst recommendations and risk.
Earnings & Valuation
This table compares Stitch Fix and Genesco”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 | 0.51 | -$28.74 million | ($0.16) | -30.00 |
| Genesco | $2.33 billion | 0.13 | -$18.89 million | ($0.18) | -159.69 |
Profitability
This table compares Stitch Fix and Genesco’s 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% |
| Genesco | N/A | 2.11% | 0.78% |
Institutional and Insider Ownership
71.0% of Stitch Fix shares are held by institutional investors. Comparatively, 94.5% of Genesco shares are held by institutional investors. 16.1% of Stitch Fix shares are held by company insiders. Comparatively, 23.1% of Genesco shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Risk & Volatility
Stitch Fix has a beta of 2.23, indicating that its stock price is 123% more volatile than the S&P 500. Comparatively, Genesco has a beta of 1.87, indicating that its stock price is 87% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings and target prices for Stitch Fix and Genesco, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Stitch Fix | 1 | 4 | 1 | 0 | 2.00 |
| Genesco | 1 | 3 | 0 | 1 | 2.20 |
Stitch Fix presently has a consensus target price of $6.00, indicating a potential upside of 25.00%. Genesco has a consensus target price of $36.00, indicating a potential upside of 25.24%. Given Genesco’s stronger consensus rating and higher possible upside, analysts plainly believe Genesco is more favorable than Stitch Fix.
Summary
Genesco beats Stitch Fix on 10 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 Genesco
Genesco Inc. operates as a retailer and wholesaler of footwear, apparel, and accessories in the United States, Puerto Rico, Canada, the United Kingdom, and the Republic of Ireland. The company operates through four segments: Journeys Group, Schuh Group, Johnston & Murphy Group, and Genesco Brands. The Journeys Group segment offers footwear and accessories through the Journeys, Journeys Kidz, and Little Burgundy retail chains, as well as through e-commerce and catalogs for young men, women, and children. Its Schuh Group segment operates Schuh retail footwear stores that offer casual and athletic footwear, as well as sells footwear through e-commerce. The Johnston & Murphy Group segment involved in the retail and e-commerce operations; and wholesale distribution of men’s dress and casual footwear, apparel, and accessories, as well as women’s footwear and accessories. Its Genesco Brands Group segment markets footwear under the Levi’s, Dockers, and G.H. Bass brands for men, women, and children, as well as designs and manufactures the STARTER brands footwear. The company operates through Journeys, Journeys Kidz, Schuh, Little Burgundy, and Johnston & Murphy brand names; and e-commerce websites, including journeys.com, journeyskidz.com, journeys.ca, schuh.co.uk, schuh.ie, schuh.eu, johnstonmurphy.com, littleburgundyshoes.com, johnstonmurphy.ca, nashvilleshoewarehouse.com, and dockersshoes.com. Genesco Inc. was incorporated in 1934 and is headquartered in Nashville, Tennessee.
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