Stitch Fix (NASDAQ:SFIX – Get Free Report) and Barnes & Noble Education (NYSE:BNED – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, earnings, profitability, analyst recommendations and valuation.
Valuation & Earnings
This table compares Stitch Fix and Barnes & Noble Education”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Stitch Fix | $1.27 billion | 0.42 | -$28.74 million | ($0.08) | -49.62 |
| Barnes & Noble Education | $1.71 billion | 0.26 | $16.87 million | $0.47 | 27.04 |
Analyst Ratings
This is a breakdown of current recommendations for Stitch Fix and Barnes & Noble Education, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Stitch Fix | 1 | 4 | 1 | 0 | 2.00 |
| Barnes & Noble Education | 1 | 1 | 2 | 0 | 2.25 |
Stitch Fix currently has a consensus target price of $5.12, indicating a potential upside of 29.09%. Barnes & Noble Education has a consensus target price of $17.25, indicating a potential upside of 35.72%. Given Barnes & Noble Education’s stronger consensus rating and higher probable upside, analysts plainly believe Barnes & Noble Education is more favorable than Stitch Fix.
Insider and Institutional Ownership
71.0% of Stitch Fix shares are held by institutional investors. Comparatively, 38.5% of Barnes & Noble Education shares are held by institutional investors. 16.1% of Stitch Fix shares are held by insiders. Comparatively, 1.2% of Barnes & Noble Education 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.
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, Barnes & Noble Education has a beta of 1.27, suggesting that its share price is 27% more volatile than the S&P 500.
Profitability
This table compares Stitch Fix and Barnes & Noble Education’s 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% |
| Barnes & Noble Education | 0.98% | 7.92% | 2.29% |
Summary
Barnes & Noble Education beats Stitch Fix on 10 of the 14 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 Barnes & Noble Education
Barnes and Noble Education, Inc. engages in the management and operation of bookstore chains in universities. It operates through the Retail and Wholesale segments. The Retail segment operates college, university, and K-12 school bookstores, physical bookstores, and virtual bookstores. The Wholesale segment sells and distributes new and used textbooks to physical bookstores. The company was founded by Leonard S, Riggio in 1965 and is headquartered in Basking Ridge, NJ.
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