Stitch Fix (NASDAQ:SFIX – Get Free Report) and Asos Pls (OTCMKTS:ASOMY – Get Free Report) are both small-cap retail/wholesale companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, earnings, valuation and risk.
Volatility & Risk
Stitch Fix has a beta of 2.26, suggesting that its share price is 126% more volatile than the S&P 500. Comparatively, Asos Pls has a beta of 2.23, suggesting that its share price is 123% more volatile than the S&P 500.
Valuation & Earnings
This table compares Stitch Fix and Asos Pls”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Stitch Fix | $1.27 billion | 0.41 | -$28.74 million | ($0.08) | -48.38 |
| Asos Pls | $3.23 billion | 0.18 | -$388.99 million | N/A | N/A |
Stitch Fix has higher earnings, but lower revenue than Asos Pls.
Analyst Recommendations
This is a summary of current ratings for Stitch Fix and Asos Pls, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Stitch Fix | 1 | 4 | 1 | 0 | 2.00 |
| Asos Pls | 0 | 0 | 0 | 2 | 4.00 |
Stitch Fix presently has a consensus target price of $5.12, suggesting a potential upside of 32.43%. Given Stitch Fix’s higher possible upside, equities analysts clearly believe Stitch Fix is more favorable than Asos Pls.
Institutional & Insider Ownership
71.0% of Stitch Fix shares are held by institutional investors. 16.1% of Stitch Fix shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Profitability
This table compares Stitch Fix and Asos Pls’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Stitch Fix | -1.43% | -9.35% | -3.78% |
| Asos Pls | N/A | N/A | N/A |
Summary
Stitch Fix beats Asos Pls on 7 of the 13 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 Asos Pls
ASOS Plc operates as an online fashion retailer in the United Kingdom, the United States, Australia, France, Germany, Spain, Italy, Sweden, the Netherlands, Denmark, Poland, and internationally. It offers womenswear and menswear products. The company sells its products under the ASOS Design, ASOS Edition, ASOS Luxe, ASOS 4505, Collusion, Reclaimed Vintage, Topshop, Topman, Miss Selfridge, HIIT, AsYou, Dark Future, UNRVLLD/SPPLY, Crooked Tongues, Daysocial, Actual, and Weekend Collective brands, as well as through third-party brands. It is also involved in the employer of marketing staff and payment processing businesses, as well as acts as a vehicle for issue of convertible bonds. ASOS Plc was incorporated in 2000 and is headquartered in London, the United Kingdom.
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