Stitch Fix (NASDAQ:SFIX – Get Free Report) and American Eagle Outfitters (NYSE:AEO – Get Free Report) are both retail/wholesale companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, valuation, profitability, earnings, institutional ownership, analyst recommendations and risk.
Analyst Recommendations
This is a breakdown of current ratings and price targets for Stitch Fix and American Eagle Outfitters, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Stitch Fix | 1 | 4 | 1 | 0 | 2.00 |
| American Eagle Outfitters | 1 | 13 | 1 | 0 | 2.00 |
Stitch Fix currently has a consensus target price of $5.00, indicating a potential upside of 35.50%. American Eagle Outfitters has a consensus target price of $22.45, indicating a potential upside of 24.96%. Given Stitch Fix’s higher possible upside, equities research analysts clearly believe Stitch Fix is more favorable than American Eagle Outfitters.
Insider and Institutional Ownership
Profitability
This table compares Stitch Fix and American Eagle Outfitters’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Stitch Fix | -1.89% | -12.23% | -4.99% |
| American Eagle Outfitters | 3.49% | 16.76% | 6.62% |
Volatility and Risk
Stitch Fix has a beta of 2.33, suggesting that its share price is 133% more volatile than the S&P 500. Comparatively, American Eagle Outfitters has a beta of 1.38, suggesting that its share price is 38% more volatile than the S&P 500.
Earnings and Valuation
This table compares Stitch Fix and American Eagle Outfitters”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Stitch Fix | $1.27 billion | 0.40 | -$28.74 million | ($0.13) | -28.38 |
| American Eagle Outfitters | $5.50 billion | 0.55 | $191.98 million | $1.12 | 16.04 |
American Eagle Outfitters has higher revenue and earnings than Stitch Fix. Stitch Fix is trading at a lower price-to-earnings ratio than American Eagle Outfitters, indicating that it is currently the more affordable of the two stocks.
Summary
American Eagle Outfitters beats Stitch Fix on 9 of the 12 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 American Eagle Outfitters
American Eagle Outfitters, Inc. operates as a multi-brand specialty retailer in the United States and internationally. The company provides jeans, apparel and accessories, and personal care products for women and men under the American Eagle brand; and intimates, apparel, activewear, and swim collections under the Aerie and OFFLINE by Aerie brands. It also offers menswear products under the Todd Snyder New York brand; and fashion clothing and accessories under the Unsubscribed brand. The company sells its products through own and licensed retail stores; concession-based shops-within-shops; and digital channels, such as www.ae.com, www.aerie.com, www.toddsnyder.com, and www.unsubscribed.com. American Eagle Outfitters, Inc. was founded in 1977 and is headquartered in Pittsburgh, Pennsylvania.
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