Head-To-Head Comparison: Stitch Fix (SFIX) and Amazon.com (AMZN)

Stitch Fix (NASDAQ: SFIX) and Amazon.com (NASDAQ:AMZN) are both retail/wholesale companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, institutional ownership, profitability, earnings, dividends, risk and analyst recommendations.

Analyst Recommendations

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This is a breakdown of recent recommendations and price targets for Stitch Fix and Amazon.com, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stitch Fix	0	6	4	0	2.40
Amazon.com	0	1	48	0	2.98

Stitch Fix currently has a consensus target price of $27.56, indicating a potential downside of 5.47%. Amazon.com has a consensus target price of $1,938.98, indicating a potential upside of 5.71%. Given Amazon.com’s stronger consensus rating and higher probable upside, analysts clearly believe Amazon.com is more favorable than Stitch Fix.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Stitch Fix	$977.13 million	2.92	-$590,000.00	N/A	N/A
Amazon.com	$177.87 billion	5.03	$3.03 billion	$4.55	403.15

Amazon.com has higher revenue and earnings than Stitch Fix.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Stitch Fix	1.90%	15.39%	7.09%
Amazon.com	3.02%	18.47%	4.33%

Institutional & Insider Ownership

12.6% of Stitch Fix shares are held by institutional investors. Comparatively, 57.4% of Amazon.com shares are held by institutional investors. 16.3% of Amazon.com shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Amazon.com beats Stitch Fix on 10 of the 11 factors compared between the two stocks.

About Stitch Fix

Stitch Fix, Inc. sells a range of apparel, shoes, and accessories through its Website and mobile app in the United States. It offers denim, dresses, blouses, skirts, shoes, jewelry, and handbags for men and women 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 founded in 2011 and is headquartered in San Francisco, California.

About Amazon.com

Amazon.com, Inc. engages in the retail sale of consumer products and subscriptions in North America and internationally. The company operates through three segments: North America, International, and Amazon Web Services (AWS) segments. It sells merchandise and content purchased for resale from vendors, as well as those offered by third-party sellers through physical stores and retail Websites, such as amazon.com, amazon.ca, amazon.com.mx, amazon.com.au, amazon.com.br, amazon.cn, amazon.fr, amazon.de, amazon.in, amazon.it, amazon.co.jp, amazon.nl, amazon.es, and amazon.co.uk. The company also manufactures and sells electronic devices, including kindle e-readers, fire tablets, fire TVs, and echo devices; and provides Kindle Direct Publishing, an online service that allows independent authors and publishers to make their books available in the Kindle Store. In addition, it offers programs that enable sellers to sell their products on its Websites, as well as their own branded Websites; and programs that allow authors, musicians, filmmakers, app developers, and others to publish and sell content. Further, the company provides compute, storage, database, and other AWS services, as well as fulfillment, publishing, digital content subscriptions, advertising, and co-branded credit card agreement services. Additionally, it offers Amazon Prime, a membership program, which provides free shipping of various items; access to unlimited streaming of movies and TV episodes; and other services. It serves consumers, sellers, developers, enterprises, and content creators. The company was founded in 1994 and is headquartered in Seattle, Washington.