Contrasting Aritzia (OTCMKTS:ATZAF) & Stitch Fix (NASDAQ:SFIX)

Stitch Fix (NASDAQ:SFIXGet Free Report) and Aritzia (OTCMKTS:ATZAFGet Free Report) are both retail/wholesale companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, earnings, risk and dividends.

Insider & Institutional Ownership

70.0% of Stitch Fix shares are held by institutional investors. 28.5% 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.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Stitch Fix and Aritzia, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Stitch Fix 1 12 0 0 1.92
Aritzia 0 2 3 0 2.60

Stitch Fix presently has a consensus price target of $5.06, indicating a potential upside of 9.02%. Aritzia has a consensus price target of $48.00, indicating a potential upside of 156.41%. Given Aritzia’s stronger consensus rating and higher probable upside, analysts clearly believe Aritzia is more favorable than Stitch Fix.

Profitability

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

Net Margins Return on Equity Return on Assets
Stitch Fix -13.74% -63.69% -25.35%
Aritzia N/A N/A N/A

Earnings & Valuation

This table compares Stitch Fix and Aritzia’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Stitch Fix $2.07 billion 0.25 -$207.12 million ($2.16) -2.15
Aritzia N/A N/A N/A N/A N/A

Aritzia has lower revenue, but higher earnings than Stitch Fix.

Summary

Aritzia beats Stitch Fix on 6 of the 9 factors compared between the two stocks.

About Stitch Fix

(Get Free Report)

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 Aritzia

(Get Free Report)

Aritzia Inc., together with its subsidiaries, designs and sells apparel and accessories for women in the United States and Canada. The company offers t-shirts and tops, sweaters, shirts and blouses, bodysuits, sweatshirts, blazers, jacket and coats, and dresses; pants, denim, leggings and bike shorts, sweatpants, skirts, shorts, sweatshorts, and jumpsuits and rompers; accessories, such as socks, hats, bags, scarves, belts, and intimates; swimwear; and shoes. It offers its products under the Wilfred, Wilfred Free, Babaton, The Group by Babaton, Babaton 101, Ten by Babaton, Tna, Little Moon, Sunday Best, Super World, TnAction, Denim Forum, Auxiliary, Talula, Tna x EMU, New Era, and Merrell brands. The company was formerly known as Aritzia Capital Corporation and changed its name to Aritzia Inc. in August 2016. Aritzia Inc. was founded in 1984 and is headquartered in Vancouver, Canada.

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