Stitch Fix (NASDAQ:SFIX) versus Industria de Diseno Textil (OTCMKTS:IDEXY) Financial Survey

Industria de Diseno Textil (OTCMKTS:IDEXY) and Stitch Fix (NASDAQ:SFIX) are both retail/wholesale companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, dividends, valuation and analyst recommendations.

Analyst Recommendations

This is a summary of recent recommendations for Industria de Diseno Textil and Stitch Fix, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Industria de Diseno Textil	0	1	0	4	3.60
Stitch Fix	1	4	1	1	2.29

Stitch Fix has a consensus price target of $6.00, indicating a potential upside of 31.00%. Given Stitch Fix’s higher probable upside, analysts plainly believe Stitch Fix is more favorable than Industria de Diseno Textil.

Institutional & Insider Ownership

71.0% of Stitch Fix shares are held by institutional investors. 17.0% of Stitch Fix shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Industria de Diseno Textil and Stitch Fix’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Industria de Diseno Textil	15.15%	32.32%	16.84%
Stitch Fix	-2.27%	-14.57%	-5.93%

Earnings & Valuation

This table compares Industria de Diseno Textil and Stitch Fix”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Industria de Diseno Textil	$41.81 billion	4.30	$6.32 billion	$0.52	27.75
Stitch Fix	$1.27 billion	0.48	-$28.74 million	($0.46)	-9.96

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

Volatility and Risk

Industria de Diseno Textil has a beta of 1.17, indicating that its share price is 17% more volatile than the S&P 500. Comparatively, Stitch Fix has a beta of 2.08, indicating that its share price is 108% more volatile than the S&P 500.

Summary

Industria de Diseno Textil beats Stitch Fix on 10 of the 15 factors compared between the two stocks.

About Industria de Diseno Textil

Industria de Diseño Textil, S.A. engages in the retail and online distribution of clothing, footwear, accessories, and household products. The company sells its products under the Zara, Pull & Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, and Zara Home brands. It is also involved in the textile manufacturing, logistics, design, insurance, construction, and real estate businesses, as well as provides financial services. The company operates in Spain, rest of Europe, the Americas, Asia, and internationally. Industria de Diseño Textil, S.A. was founded in 1963 and is headquartered in A Coruña, Spain.

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.