Stitch Fix (NASDAQ: SFIX) and Mercadolibre (NASDAQ:MELI) are both mid-cap retail/wholesale companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, risk, dividends and institutional ownership.
Earnings and Valuation
This table compares Stitch Fix and Mercadolibre’s gross revenue, earnings per share and valuation.
||Earnings Per Share
Mercadolibre has lower revenue, but higher earnings than Stitch Fix.
This is a breakdown of recent recommendations and price targets for Stitch Fix and Mercadolibre, as reported by MarketBeat.
||Strong Buy Ratings
Stitch Fix presently has a consensus price target of $25.83, suggesting a potential upside of 24.80%. Mercadolibre has a consensus price target of $273.92, suggesting a potential downside of 20.67%. Given Stitch Fix’s higher possible upside, research analysts clearly believe Stitch Fix is more favorable than Mercadolibre.
This table compares Stitch Fix and Mercadolibre’s net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
Insider and Institutional Ownership
89.5% of Mercadolibre shares are owned by institutional investors. 0.4% of Mercadolibre shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Mercadolibre pays an annual dividend of $0.60 per share and has a dividend yield of 0.2%. Stitch Fix does not pay a dividend. Mercadolibre pays out 19.9% of its earnings in the form of a dividend.
Mercadolibre beats Stitch Fix on 10 of the 13 factors compared between the two stocks.
About Stitch Fix
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.
MercadoLibre, Inc. is an e-commerce company. The Company enables commerce through its marketplace platform in Latin America, which is designed to provide users with a portfolio of services to facilitate commercial transactions. Its geographic segments are Brazil, Argentina, Mexico Venezuela and Other Countries (which includes Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, Panama, Peru, Portugal, Guatemala, Bolivia, Paraguay, Uruguay and the United States of America). It also operates online commerce platforms in the Dominican Republic, Honduras, Nicaragua, Salvador, Panama, Bolivia, Guatemala, Paraguay and Portugal. It offers an ecosystem of six integrated e-commerce services: the MercadoLibre Marketplace, the MercadoLibre Classifieds Service, the MercadoPago payments solution, the MercadoLibre advertising program, the MercadoShops online Webstores solution and the MercadoEnvios shipping service.
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