Stitch Fix (NASDAQ:SFIX – Get Free Report) and Abercrombie & Fitch (NYSE:ANF – Get Free Report) are both retail/wholesale companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, valuation, institutional ownership, profitability, dividends and analyst recommendations.
Insider & Institutional Ownership
67.5% of Stitch Fix shares are owned by institutional investors. 28.5% of Stitch Fix shares are owned by insiders. Comparatively, 3.8% of Abercrombie & Fitch shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Profitability
This table compares Stitch Fix and Abercrombie & Fitch’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Stitch Fix | -10.50% | -50.24% | -19.71% |
| Abercrombie & Fitch | 2.85% | 16.69% | 4.42% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Stitch Fix | 2 | 11 | 0 | 0 | 1.85 |
| Abercrombie & Fitch | 0 | 4 | 2 | 0 | 2.33 |
Stitch Fix currently has a consensus target price of $3.86, indicating a potential upside of 14.51%. Abercrombie & Fitch has a consensus target price of $49.14, indicating a potential downside of 22.29%. Given Stitch Fix’s higher probable upside, analysts plainly believe Stitch Fix is more favorable than Abercrombie & Fitch.
Risk and Volatility
Stitch Fix has a beta of 2.27, indicating that its stock price is 127% more volatile than the S&P 500. Comparatively, Abercrombie & Fitch has a beta of 1.43, indicating that its stock price is 43% more volatile than the S&P 500.
Valuation & Earnings
This table compares Stitch Fix and Abercrombie & Fitch’s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Stitch Fix | $1.64 billion | 0.24 | -$171.97 million | ($1.51) | -2.23 |
| Abercrombie & Fitch | $3.70 billion | 0.86 | $2.82 million | $2.13 | 29.69 |
Abercrombie & Fitch has higher revenue and earnings than Stitch Fix. Stitch Fix is trading at a lower price-to-earnings ratio than Abercrombie & Fitch, indicating that it is currently the more affordable of the two stocks.
Summary
Abercrombie & Fitch beats Stitch Fix on 10 of the 14 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 Abercrombie & Fitch
Abercrombie & Fitch Co., through its subsidiaries, operates as a specialty retailer in the United States, Europe, the Middle East, Asia, the Asia-Pacific, Canada, and internationally. The company operates through two segments, Hollister and Abercrombie. It offers an assortment of apparel, personal care products, and accessories for men, women, and kids under the Hollister, Gilly Hicks, Social Tourist, Abercrombie & Fitch, and abercrombie kids brands. The company sells products through its stores; various wholesale, franchise, and licensing arrangements; and e-commerce platforms. Abercrombie & Fitch Co. was founded in 1892 and is headquartered in New Albany, Ohio.
Receive News & Ratings for Stitch Fix Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Stitch Fix and related companies with MarketBeat.com's FREE daily email newsletter.
