Head-To-Head Survey: Accolade (NASDAQ:ACCD) and Farfetch (NYSE:FTCH)

Accolade (NASDAQ:ACCD) and Farfetch (NYSE:FTCH) are both business services companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, institutional ownership, dividends, risk, valuation and profitability.

Earnings & Valuation

This table compares Accolade and Farfetch’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Accolade $170.36 million 18.12 -$50.65 million ($1.65) -28.32
Farfetch $1.67 billion 8.67 -$3.35 billion ($9.75) -4.20

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

Risk and Volatility

Accolade has a beta of 1.68, indicating that its share price is 68% more volatile than the S&P 500. Comparatively, Farfetch has a beta of 3.27, indicating that its share price is 227% more volatile than the S&P 500.

Insider & Institutional Ownership

68.0% of Accolade shares are owned by institutional investors. Comparatively, 83.8% of Farfetch shares are owned by institutional investors. 10.5% of Accolade shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Accolade -44.02% -18.32% -12.28%
Farfetch -111.96% -1,281.44% -57.26%

Analyst Ratings

This is a summary of current recommendations for Accolade and Farfetch, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Accolade 0 1 11 0 2.92
Farfetch 0 0 11 0 3.00

Accolade currently has a consensus target price of $60.82, suggesting a potential upside of 30.18%. Farfetch has a consensus target price of $62.36, suggesting a potential upside of 52.14%. Given Farfetch’s stronger consensus rating and higher possible upside, analysts clearly believe Farfetch is more favorable than Accolade.

Summary

Accolade beats Farfetch on 7 of the 13 factors compared between the two stocks.

About Accolade

Accolade, Inc. develops and provides technology-enabled solutions that help people to understand, navigate, and utilize the healthcare system and their workplace benefits in the United States. The company offers a platform with cloud-based technology and multimodal support from a team of health assistants and clinicians, including nurses, physician medical directors, and behavioral health specialists. It also provides second opinion consultation and health care decision support services. The company serves employers who provide their employees and their employees' families a single place to turn for their health, healthcare, and benefits needs. Accolade, Inc. was founded in 2007 and is headquartered in Plymouth Meeting, Pennsylvania.

About Farfetch

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.

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