Stitch Fix (NASDAQ:SFIX) versus NEXT (OTCMKTS:NXGPF) Head-To-Head Analysis

Stitch Fix (NASDAQ:SFIX) and NEXT (OTCMKTS:NXGPF) are both consumer cyclical companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, institutional ownership, analyst recommendations, risk, valuation, dividends and profitability.

Earnings and Valuation

This table compares Stitch Fix and NEXT’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Stitch Fix	$1.43 billion	0.30	-$171.97 million	($1.02)	-3.47
NEXT	N/A	N/A	N/A	$3.87	29.10

NEXT has lower revenue, but higher earnings than Stitch Fix. Stitch Fix is trading at a lower price-to-earnings ratio than NEXT, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stitch Fix	2	10	0	0	1.83
NEXT	0	2	1	0	2.33

Stitch Fix presently has a consensus price target of $3.45, suggesting a potential downside of 2.42%. Given Stitch Fix’s higher possible upside, analysts clearly believe Stitch Fix is more favorable than NEXT.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Stitch Fix	-8.68%	-41.40%	-16.10%
NEXT	N/A	N/A	N/A

Insider & Institutional Ownership

71.0% of Stitch Fix shares are owned by institutional investors. Comparatively, 47.2% of NEXT shares are owned by institutional investors. 25.9% of Stitch Fix shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

NEXT beats Stitch Fix on 7 of the 11 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 NEXT

NEXT plc engages in the retail of clothing, beauty, footwear, and home products in the United Kingdom, rest of Europe, the Middle East, Asia, and internationally. The company operates through NEXT Retail; NEXT Online; NEXT Finance; Total Platform; Property Management; and Franchise, Sourcing, and other segments. It offers consumer credit; NEXT branded products; and women's, men's, children's, clothing, homeware, and beauty products under the LABEL brand, as well as other third-party brands. The company also provides property management services, including holding and lease of properties; operates call centers; and websites, marketing, warehousing, and distribution networks to third-party brands. It operates through retail stores, online retail platforms, and franchise stores. The company was formerly known as J Hepworth & Son and changed its name to NEXT plc in 1986. NEXT plc was founded in 1864 and is headquartered in Enderby, the United Kingdom.