Amazon.com vs Stitch Fix Which Should You Buy?

Amazon.com and Stitch Fix are two prominent players in the e-commerce industry, each offering a unique approach to online shopping. While Amazon is known for its wide range of products and fast delivery services, Stitch Fix specializes in personalized styling services for its customers. Both companies have seen significant growth in their stock prices in recent years, with Amazon maintaining its position as a top-performing tech stock and Stitch Fix carving out a niche in the competitive fashion market. Investors are closely watching these two stocks to see how they will continue to perform in the ever-evolving e-commerce landscape.

Amazon.com or Stitch Fix?

When comparing Amazon.com and Stitch Fix, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Amazon.com and Stitch Fix.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Amazon.com has a dividend yield of -%, while Stitch Fix has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Amazon.com reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Stitch Fix reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Amazon.com P/E ratio at 47.81 and Stitch Fix's P/E ratio at -4.44. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Amazon.com P/B ratio is 9.20 while Stitch Fix's P/B ratio is 3.06.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Amazon.com has seen a 5-year revenue growth of 1.33%, while Stitch Fix's is -0.05%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Amazon.com's ROE at 21.82% and Stitch Fix's ROE at -61.36%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $220.60 for Amazon.com and $4.50 for Stitch Fix. Over the past year, Amazon.com's prices ranged from $143.64 to $227.13, with a yearly change of 58.12%. Stitch Fix's prices fluctuated between $2.06 and $5.04, with a yearly change of 144.90%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.