Stitch Fix (NASDAQ:SFIX – Get Free Report) and Asbury Automotive Group (NYSE:ABG – Get Free Report) are both consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, dividends, valuation, earnings, profitability, risk and institutional ownership.
Earnings and Valuation
This table compares Stitch Fix and Asbury Automotive Group”s 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 | 0.42 | -$28.74 million | ($0.08) | -49.62 |
| Asbury Automotive Group | $17.98 billion | 0.21 | $492.00 million | $26.74 | 7.89 |
Institutional & Insider Ownership
71.0% of Stitch Fix shares are owned by institutional investors. 16.1% of Stitch Fix shares are owned by insiders. Comparatively, 0.7% of Asbury Automotive Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Profitability
This table compares Stitch Fix and Asbury Automotive Group’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% |
| Asbury Automotive Group | 2.83% | 12.72% | 4.31% |
Analyst Ratings
This is a summary of recent recommendations for Stitch Fix and Asbury Automotive Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Stitch Fix | 1 | 4 | 1 | 0 | 2.00 |
| Asbury Automotive Group | 1 | 6 | 2 | 0 | 2.11 |
Stitch Fix presently has a consensus target price of $5.12, suggesting a potential upside of 29.09%. Asbury Automotive Group has a consensus target price of $246.71, suggesting a potential upside of 16.89%. Given Stitch Fix’s higher probable upside, equities research analysts plainly believe Stitch Fix is more favorable than Asbury Automotive Group.
Risk and Volatility
Stitch Fix has a beta of 2.26, indicating that its share price is 126% more volatile than the S&P 500. Comparatively, Asbury Automotive Group has a beta of 0.71, indicating that its share price is 29% less volatile than the S&P 500.
Summary
Asbury Automotive Group beats Stitch Fix on 9 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 Asbury Automotive Group
Asbury Automotive Group, Inc., together with its subsidiaries, operates as an automotive retailer in the United States. It offers a range of automotive products and services, including new and used vehicles; and vehicle repair and maintenance services, replacement parts, and collision repair services. The company also provides finance and insurance products, including arranging vehicle financing through third parties; and aftermarket products, such as extended service contracts, guaranteed asset protection debt cancellation, prepaid maintenance, and disability and accident insurance. Asbury Automotive Group, Inc. was founded in 1996 and is based in Duluth, Georgia.
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