Stitch Fix (NASDAQ:SFIX) & Zalando (OTCMKTS:ZLNDY) Head to Head Survey

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

Institutional and Insider Ownership

71.0% of Stitch Fix shares are owned by institutional investors. 17.0% of Stitch Fix shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Stitch Fix and Zalando, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Stitch Fix 0 5 1 0 2.17
Zalando 1 1 2 1 2.60

Stitch Fix currently has a consensus target price of $6.00, indicating a potential upside of 40.52%. Given Stitch Fix’s higher possible upside, equities research analysts clearly believe Stitch Fix is more favorable than Zalando.

Profitability

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

Net Margins Return on Equity Return on Assets
Stitch Fix -2.27% -14.57% -5.93%
Zalando 2.49% 10.19% 3.37%

Risk and Volatility

Stitch Fix has a beta of 2.08, suggesting that its stock price is 108% more volatile than the S&P 500. Comparatively, Zalando has a beta of 1.56, suggesting that its stock price is 56% more volatile than the S&P 500.

Earnings & Valuation

This table compares Stitch Fix and Zalando”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 0.44 -$28.74 million ($0.46) -9.28
Zalando $11.44 billion 0.73 $271.71 million $0.57 27.88

Zalando has higher revenue and earnings than Stitch Fix. Stitch Fix is trading at a lower price-to-earnings ratio than Zalando, indicating that it is currently the more affordable of the two stocks.

Summary

Zalando beats Stitch Fix on 11 of the 15 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 Zalando

(Get Free Report)

Zalando SE operates an online platform for fashion and lifestyle products. The company operates through Fashion Store and Offprice segments. It provides shoes, apparel, accessories, and beauty products with free delivery and returns, as well as various payment options. The company also sells its products through Lounge by Zalando; and brick-and-mortar outlet stores. It operates in Germany, Austria, Switzerland, Belgium, Croatia, the Czech Republic, Denmark, Estonia, Finland, Hungary, France, Ireland, Italy, Latvia, Lithuania, Luxembourg, the Netherlands, Norway, Poland, Romania, Slovakia, Slovenia, Spain, Sweden, and the United Kingdom. The company was founded in 2008 and is headquartered in Berlin, Germany.

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