Critical Contrast: ASOS (OTCMKTS:ASOMF) versus ContextLogic (NASDAQ:WISH)

ContextLogic (NASDAQ:WISH) and ASOS (OTCMKTS:ASOMF) are both consumer cyclical companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, valuation, risk, earnings, analyst recommendations, dividends and institutional ownership.

Valuation & Earnings

This table compares ContextLogic and ASOS’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ContextLogic	$287.00 million	0.50	-$317.00 million	($11.98)	-0.50
ASOS	N/A	N/A	N/A	$0.45	10.45

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

Insider & Institutional Ownership

46.0% of ContextLogic shares are held by institutional investors. Comparatively, 28.2% of ASOS shares are held by institutional investors. 8.2% of ContextLogic shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares ContextLogic and ASOS’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ContextLogic	-131.05%	-115.96%	-62.36%
ASOS	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of current recommendations and price targets for ContextLogic and ASOS, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ContextLogic	0	2	0	0	2.00
ASOS	0	0	0	0	N/A

Summary

ASOS beats ContextLogic on 5 of the 8 factors compared between the two stocks.

About ContextLogic

ContextLogic Inc. operates as a mobile ecommerce company in Europe, North America, South America, and internationally. The company operates Wish, an ecommerce platform that connects consumers to merchants. It also provides marketplace and logistics services to merchants. ContextLogic Inc. was incorporated in 2010 and is headquartered in San Francisco, California.

About ASOS

ASOS Plc operates as an online fashion retailer in the United Kingdom, the United States, Australia, France, Germany, Spain, Italy, Sweden, the Netherlands, Denmark, Poland, and internationally. It offers womenswear and menswear products. The company sells its products under the ASOS Design, ASOS Edition, ASOS Luxe, ASOS 4505, Collusion, Reclaimed Vintage, Topshop, Topman, Miss Selfridge, HIIT, AsYou, Dark Future, UNRVLLD/SPPLY, Crooked Tongues, Daysocial, Actual, and Weekend Collective brands, as well as through third-party brands. It is also involved in the employer of marketing staff and payment processing businesses, as well as acts as a vehicle for issue of convertible bonds. ASOS Plc was incorporated in 2000 and is headquartered in London, the United Kingdom.