Analyzing Stitch Fix (SFIX) and JD.Com (NASDAQ:JD)

JD.Com (NASDAQ: JD) and Stitch Fix (NASDAQ:SFIX) are both mid-cap technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, risk, analyst recommendations, profitability, valuation and dividends.

Insider and Institutional Ownership

44.0% of JD.Com shares are owned by institutional investors. 16.6% of JD.Com shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations and price targets for JD.Com and Stitch Fix, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
JD.Com 0 3 13 0 2.81
Stitch Fix 0 4 3 0 2.43

JD.Com currently has a consensus price target of $46.67, suggesting a potential upside of 0.57%. Stitch Fix has a consensus price target of $25.83, suggesting a potential upside of 2.76%. Given Stitch Fix’s higher possible upside, analysts plainly believe Stitch Fix is more favorable than JD.Com.

Valuation & Earnings

This table compares JD.Com and Stitch Fix’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
JD.Com $37.47 billion 1.76 -$484.24 million ($0.07) -662.86
Stitch Fix $977.13 million 2.49 -$590,000.00 N/A N/A

Stitch Fix has lower revenue, but higher earnings than JD.Com.

Profitability

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

Net Margins Return on Equity Return on Assets
JD.Com -0.29% 0.83% 0.21%
Stitch Fix N/A N/A N/A

Summary

JD.Com beats Stitch Fix on 7 of the 11 factors compared between the two stocks.

JD.Com Company Profile

JD.com, Inc. is an online direct sales company. The Company engages in the sale of electronics and home appliance products and general merchandise products (including audio, video products and books) sourced from manufacturers, distributors and publishers in China on the Internet through its Website, www.jd.com. It also offers an online marketplace that enables third-party sellers to sell their products to customers on the Company’s Website. The Company operates through the provision of a single class of services for accelerating and improving the delivery of its products over the Internet. The Company also offers online and in-person payment options and customer services. The Company operates approximately 210 warehouses with an aggregate gross floor area of approximately four million square meters in over 50 cities. It operates over 5,370 delivery stations and pickup stations in approximately 2,350 counties and districts across China.

Stitch Fix Company Profile

Stitch Fix, Inc. is an online personalized styling service company. The Company offers apparel, shoes and accessories across categories, brands, product types and price points. The Company serves its clients in the following categories: Women’s, Petite, Maternity, Men’s and Plus. The Company also offers a wide variety of product types, including denim, dresses, blouses, skirts, shoes, jewelry and handbags. The Company’s data science capabilities fuel business consist of rich and growing set of detailed client and merchandise data and proprietary algorithms. The Company uses data science throughout its business, including prediction of purchase behavior, forecast demand, optimize inventory and design new apparel.

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