Kidpik (NASDAQ:PIK – Get Rating) and ContextLogic (NASDAQ:WISH – Get Rating) are both small-cap retail/wholesale companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, institutional ownership, risk, earnings, profitability, analyst recommendations and valuation.
Earnings & Valuation
This table compares Kidpik and ContextLogic's top-line revenue, earnings per share and valuation.
Get Kidpik alerts:| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Kidpik | $21.83 million | 0.55 | -$5.95 million | ($0.95) | -1.64 |
| ContextLogic | $2.09 billion | 0.30 | -$361.00 million | ($0.41) | -2.28 |
Kidpik has higher earnings, but lower revenue than ContextLogic. ContextLogic is trading at a lower price-to-earnings ratio than Kidpik, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Kidpik and ContextLogic's net margins, return on equity and return on assets.| Net Margins | Return on Equity | Return on Assets | |
| Kidpik | -33.94% | -62.91% | -35.98% |
| ContextLogic | -27.75% | -23.48% | -15.09% |
Insider & Institutional Ownership
9.8% of Kidpik shares are owned by institutional investors. Comparatively, 37.4% of ContextLogic shares are owned by institutional investors. 67.5% of Kidpik shares are owned by insiders. Comparatively, 20.8% of ContextLogic shares are owned by 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 Recommendations
This is a breakdown of recent ratings and target prices for Kidpik and ContextLogic, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Kidpik | 0 | 0 | 1 | 0 | 3.00 |
| ContextLogic | 1 | 5 | 1 | 0 | 2.00 |
ContextLogic has a consensus target price of $4.81, indicating a potential upside of 415.39%. Given ContextLogic's higher possible upside, analysts clearly believe ContextLogic is more favorable than Kidpik.
Summary
ContextLogic beats Kidpik on 7 of the 12 factors compared between the two stocks.
About Kidpik
(Get Rating)
Kidpik Corp. operates as a subscription-based e-commerce company that sells kids apparel, footwear, and accessories. The company offers apparel, including tops, bottoms, cardigans, jackets, dresses, and swimwear in knit and woven fabrications; shoes, such as sneakers, boots, sandals, and dress shoes; and accessories comprising sunglasses, jewelry, bags, socks, hats, hair goods, and other items. It serves its customers through its retail website, shop.kidpik.com; amazon.com; and clothing subscription boxes, which provide mix-&-match coordinated outfits that are personalized based on each member's preferences. The company was incorporated in 2015 and is based in New York, New York.
About ContextLogic
(Get Rating)
ContextLogic Inc. operates as a mobile ecommerce company in Europe, North America, South America, and internationally. The company operates Wish, an ecommerce platform that connects users to merchants. It also provides marketplace and logistics services to merchants. The company was incorporated in 2010 and is headquartered in San Francisco, California.
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