Zalando (OTCMKTS:ZLNDY – Get Free Report) and Stitch Fix (NASDAQ:SFIX – Get Free Report) are both retail/wholesale companies, but which is the better stock? We will compare the two companies based on the strength of their risk, dividends, institutional ownership, earnings, analyst recommendations, profitability and valuation.
Risk and Volatility
Zalando has a beta of 1.48, meaning that its stock price is 48% more volatile than the S&P 500. Comparatively, Stitch Fix has a beta of 2.03, meaning that its stock price is 103% more volatile than the S&P 500.
Analyst Ratings
This is a summary of current ratings for Zalando and Stitch Fix, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Zalando | 1 | 1 | 2 | 1 | 2.60 |
| Stitch Fix | 0 | 5 | 1 | 0 | 2.17 |
Valuation & Earnings
This table compares Zalando and Stitch Fix”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Zalando | $11.44 billion | 0.71 | $271.71 million | $0.57 | 26.84 |
| Stitch Fix | $1.27 billion | 0.45 | -$28.74 million | ($0.23) | -18.91 |
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.
Profitability
This table compares Zalando and Stitch Fix’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Zalando | 2.49% | 10.19% | 3.37% |
| Stitch Fix | -2.27% | -14.57% | -5.93% |
Institutional & Insider Ownership
71.0% of Stitch Fix shares are owned by institutional investors. 17.0% of Stitch Fix shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Summary
Zalando beats Stitch Fix on 11 of the 15 factors compared between the two stocks.
About Zalando
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.
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.
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