Carter's, Inc. (CRI) vs Stitch Fix, Inc. (SFIX)

Carter's, Inc. and Stitch Fix, Inc. are both Apparel Retail companies. Carter's, Inc. is the larger, with a market value of $1.2B against $346.5M — 3.5× the size. Stitch Fix, Inc. has negative trailing earnings, so its P/E is not meaningful; Carter's, Inc. trades at 5.4×. Stitch Fix, Inc. grew revenue faster over the last twelve months: 6.39% against 5.01%. Carter's, Inc. has the higher net margin (7.30% vs −0.94%) and the higher return on invested capital (17.6% vs −57.6%). Across the 21 metrics below, Carter's, Inc. leads on 14 and Stitch Fix, Inc. on 7.

Valuation

Metric CRI SFIX Apparel Retail median
P/E 5.40 n/m 13.45
P/S 0.39 0.27 0.32
P/B 1.10 1.88 1.91
Price to free cash flow 7.17 18.59 11.85
EV/EBITDA 4.64 210.98 8.18
EV/Sales 0.57 0.15 0.55
Earnings yield 18.52% (3.47%) 4.97%
Free cash flow yield 13.94% 5.38% 3.74%

Profitability

Metric CRI SFIX Apparel Retail median
Gross margin 49.13% 43.65% 41.90%
Operating margin 10.38% (1.61%) 2.50%
Net margin 7.30% (0.94%) 3.41%
Free cash flow margin 10.75% 1.47% 2.86%
Return on equity 22.65% (6.32%) 7.71%
Return on assets 8.46% (2.63%) 2.85%
Return on invested capital 17.60% (57.56%) 5.83%

Growth

Metric CRI SFIX Apparel Retail median
Revenue growth (TTM) 5.01% 6.39% 4.87%
EPS growth (last fiscal year) (50.59%) 59.68% 5.51%
Revenue growth, 5-year CAGR (0.85%) (8.49%) 6.40%
Net income growth, 5-year CAGR (3.99%) 0.00% 0.00%

Health

Metric CRI SFIX Apparel Retail median
Debt to equity 0.54 0.00 0.03
Current ratio 2.78 1.48 1.48
Net debt to EBITDA 0.40 (185.11) (0.37)

Dividend

Metric CRI SFIX Apparel Retail median
Dividend yield 3.08% — 2.08%
Payout ratio 0.17 — 0.21

Size

Metric CRI SFIX Apparel Retail median
Market cap 1.20b 346.49m 425.23m

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