361 Degrees International (OTCMKTS:TSIOF) and Stitch Fix (NASDAQ:SFIX) Critical Review

361 Degrees International (OTCMKTS:TSIOF) and Stitch Fix (NASDAQ:SFIX) are both small-cap retail/wholesale companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, dividends, risk, earnings and valuation.

Analyst Ratings

This is a summary of recent recommendations and price targets for 361 Degrees International and Stitch Fix, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
361 Degrees International	0	0	0	0	0.00
Stitch Fix	1	4	0	0	1.80

Stitch Fix has a consensus price target of $5.00, suggesting a potential upside of 63.40%. Given Stitch Fix’s stronger consensus rating and higher possible upside, analysts plainly believe Stitch Fix is more favorable than 361 Degrees International.

Volatility & Risk

361 Degrees International has a beta of 0.16, indicating that its share price is 84% less volatile than the S&P 500. Comparatively, Stitch Fix has a beta of 2.33, indicating that its share price is 133% more volatile than the S&P 500.

Valuation and Earnings

This table compares 361 Degrees International and Stitch Fix”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
361 Degrees International	$1.55 billion	0.83	$182.07 million	N/A	N/A
Stitch Fix	$1.27 billion	0.33	-$28.74 million	($0.13)	-23.54

361 Degrees International has higher revenue and earnings than Stitch Fix.

Profitability

This table compares 361 Degrees International and Stitch Fix’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
361 Degrees International	N/A	N/A	N/A
Stitch Fix	-1.89%	-12.23%	-4.99%

Insider & Institutional Ownership

71.0% of Stitch Fix shares are held by institutional investors. 16.1% of Stitch Fix shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

361 Degrees International beats Stitch Fix on 6 of the 11 factors compared between the two stocks.

About 361 Degrees International

361 Degrees International Limited, an investment holding company, manufactures and trades in sporting goods in the People's Republic of China. It operates in two segments, Adults and Kids. The company offers adult and children footwear, apparels, and accessories for sports and life under the 361º core and 361º Kids brands. It also manufactures and trades in shoes soles; trades in children sporting goods; and operates a gas station. The company operated a network of stores under the 361º core brand name. It also sells products through its 361sport.com Website; other e-commerce platforms, including Tmall, Taobao, and JD; and authorized retailers and distributors. The company was founded in 2003 and is headquartered in Xiamen, the People's Republic of China.

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.