Woolworths (OTCMKTS:WLWHY) and Stitch Fix (NASDAQ:SFIX) Head-To-Head Review

Woolworths (OTCMKTS:WLWHY) and Stitch Fix (NASDAQ:SFIX) are both retail/wholesale companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, valuation, risk, institutional ownership, analyst recommendations, earnings and profitability.

Volatility & Risk

Woolworths has a beta of 0.36, indicating that its share price is 64% less volatile than the S&P 500. Comparatively, Stitch Fix has a beta of 2.23, indicating that its share price is 123% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for Woolworths and Stitch Fix, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Woolworths	0	0	0	1	4.00
Stitch Fix	1	4	1	0	2.00

Stitch Fix has a consensus price target of $6.00, suggesting a potential upside of 23.20%. Given Stitch Fix’s higher possible upside, analysts clearly believe Stitch Fix is more favorable than Woolworths.

Earnings and Valuation

This table compares Woolworths and Stitch Fix”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Woolworths	$4.42 billion	0.80	$134.61 million	N/A	N/A
Stitch Fix	$1.27 billion	0.52	-$28.74 million	($0.16)	-30.44

Woolworths has higher revenue and earnings than Stitch Fix.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Woolworths	N/A	N/A	N/A
Stitch Fix	-2.23%	-14.38%	-5.88%

Institutional and Insider Ownership

71.0% of Stitch Fix shares are owned by institutional investors. 16.1% of Stitch Fix shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Woolworths beats Stitch Fix on 8 of the 13 factors compared between the two stocks.

About Woolworths

Woolworths Holdings Limited, through its subsidiaries, operates a chain of retail stores in South Africa, Australia, and New Zealand. It operates through seven segments: Woolworths Fashion, Beauty and Home; Woolworths Food; Woolworths Financial Services; Woolworths Logistics; Country Road Group; and Treasury. The company provides food, clothing, homeware, beauty, and various lifestyle products. It offers financial products and services, such as store cards, credit cards, personal loans, and other financial products. The company is also involved in the cash and debt management activities. Woolworths Holdings Limited was incorporated in 1929 and is based in Cape Town, South Africa.

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.