Qurate Retail Group (QRTEA) & Stitch Fix (SFIX) Critical Analysis

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

Institutional & Insider Ownership

84.7% of Qurate Retail Group shares are held by institutional investors. Comparatively, 12.1% of Stitch Fix shares are held by institutional investors. 0.0% of Qurate Retail Group shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations and price targets for Qurate Retail Group and Stitch Fix, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Qurate Retail Group 1 0 10 0 2.82
Stitch Fix 0 5 3 0 2.38

Qurate Retail Group presently has a consensus target price of $31.31, suggesting a potential upside of 46.38%. Stitch Fix has a consensus target price of $25.71, suggesting a potential downside of 5.18%. Given Qurate Retail Group’s stronger consensus rating and higher probable upside, analysts clearly believe Qurate Retail Group is more favorable than Stitch Fix.

Earnings & Valuation

This table compares Qurate Retail Group and Stitch Fix’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Qurate Retail Group $10.38 billion 0.97 $2.44 billion $3.25 6.58
Stitch Fix $977.13 million 2.59 -$590,000.00 N/A N/A

Qurate Retail Group has higher revenue and earnings than Stitch Fix.

Profitability

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

Net Margins Return on Equity Return on Assets
Qurate Retail Group 11.15% 19.57% 7.14%
Stitch Fix 1.90% 15.39% 7.09%

Summary

Qurate Retail Group beats Stitch Fix on 10 of the 11 factors compared between the two stocks.

About Qurate Retail Group

Qurate Retail Group, Inc. markets and sells various consumer products primarily through live merchandise-focused televised shopping programs, Websites, and mobile applications. The company's Websites offers home, apparel, beauty, accessories, jewelry, and electronics products. It also operates as an online retailer of women's, children's, and men's apparel, and children's merchandise; and home, beauty, and personalized products, as well as retails its products through catalogs, and retail and outlet stores. In addition, the company markets its products under the QVC, HSN, zulily, Frontgate, Ballard Designs, Grandin Road, Garnet Hill, and Improvements brand names. Its programming distributed products to approximately 362 million households in the United States, Germany, Austria, Japan, the United Kingdom, the Republic of Ireland, Italy, and France. The company was formerly known as QVC Group and changed its name to Qurate Retail Group, Inc. in March 2018. Qurate Retail Group, Inc. is based in Englewood, Colorado. Qurate Retail Group, Inc. is a subsidiary of Liberty Interactive Corporation.

About Stitch Fix

Stitch Fix, Inc. sells a range of apparel, shoes, and accessories through its Website and mobile app in the United States. It offers denim, dresses, blouses, skirts, shoes, jewelry, and handbags for men and women 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 founded in 2011 and is headquartered in San Francisco, California.

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