Farfetch (NYSE:FTCH) and Sito Mobile (NASDAQ:SITO) are both retail/wholesale companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, analyst recommendations, profitability, earnings and risk.

Insider and Institutional Ownership

64.6% of Farfetch shares are held by institutional investors. Comparatively, 11.1% of Sito Mobile shares are held by institutional investors. 2.2% of Sito Mobile shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings for Farfetch and Sito Mobile, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Farfetch 1 1 9 0 2.73
Sito Mobile 0 1 1 0 2.50

Farfetch presently has a consensus price target of $22.14, indicating a potential upside of 82.07%. Sito Mobile has a consensus price target of $3.00, indicating a potential upside of 1,150.00%. Given Sito Mobile’s higher possible upside, analysts clearly believe Sito Mobile is more favorable than Farfetch.

Valuation & Earnings

This table compares Farfetch and Sito Mobile’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Farfetch $602.38 million 6.05 -$155.57 million ($0.59) -20.61
Sito Mobile $39.75 million 0.15 -$17.07 million ($0.68) -0.35

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

Risk and Volatility

Farfetch has a beta of 2.53, meaning that its share price is 153% more volatile than the S&P 500. Comparatively, Sito Mobile has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500.

Profitability

This table compares Farfetch and Sito Mobile’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Farfetch -35.84% -25.14% -18.34%
Sito Mobile -34.20% -119.53% -54.19%

Summary

Farfetch beats Sito Mobile on 9 of the 14 factors compared between the two stocks.

Farfetch Company Profile

Farfetch Ltd. engages in the retail of fashion and luxury goods. It offers womenswear, menswear, kidswear, vintage, fine watches, and fine jewelry. The company was founded by José Manuel Ferreira Neves in 2007 and launched in 2008 and is headquartered in London, the United Kingdom.

Sito Mobile Company Profile

SITO Mobile, Ltd. provides advertisement delivery, measurement and attribution, and consumer insights using its proprietary location-based marketing intelligence platform in the United States and Canada. It offers Ad Placement, which delivers advertisements on behalf of its customers to audiences of existing and prospective consumers in a privacy compliant manner; and advertisements across television, desktop, social media, and digital out of home platforms. The company also provides measurement and attribution products, including Real-time Verified Walk-In, a platform built in-house working in tandem with a data management platform and demand side platform; Location, Audience and Behavior Sciences reports that provide an analysis of a customer's audience, breaking down location, and purchase and demographic data against various control groups for selected targeted audiences in real time; and Purchase Science Reports, which offer transaction data to make marketing campaigns relevant and measurable. In addition, it offers Insights products, such as Consumer Behavior and Location Sciences, which explores the consumer journey and presents strategic knowledge assets and actionable insights for executives and strategic decision makers looking to understand and influence consumer behaviors. The company provides its services to brands, advertising agencies, out-of-home advertisers, media companies, and non-media companies through salesforce and account management teams. The company was formerly known as Single Touch Systems, Inc. and changed its name to SITO Mobile, Ltd. in September 2014. SITO Mobile, Ltd. was incorporated in 2000 and is based in Jersey City, New Jersey.

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