Stitch Fix vs Amazon.com Which Is a Smarter Choice?

Stitch Fix and Amazon.com are two popular stocks in the retail industry, but they offer investors different opportunities. Stitch Fix is a subscription-based personal styling service that focuses on personalized recommendations, while Amazon.com is a global e-commerce and technology giant known for its diverse range of products and services. Both companies have seen significant growth in recent years, but investors must consider factors such as market trends, competition, and growth potential when deciding where to invest their money.

Stitch Fix or Amazon.com?

When comparing Stitch Fix and Amazon.com, 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 Stitch Fix and Amazon.com.

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. Stitch Fix has a dividend yield of -%, while Amazon.com has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Stitch Fix reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Amazon.com 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 Stitch Fix P/E ratio at -3.80 and Amazon.com's P/E ratio at 43.56. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Stitch Fix P/B ratio is 2.62 while Amazon.com's P/B ratio is 8.38.

Growth Investors:

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

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $3.83 for Stitch Fix and $205.59 for Amazon.com. Over the past year, Stitch Fix's prices ranged from $2.06 to $5.04, with a yearly change of 144.90%. Amazon.com's prices fluctuated between $139.52 and $212.25, with a yearly change of 52.13%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.