Better Buy: Costco vs. Stitch Fix

Although Costco (NASDAQ: COST) and Stitch Fix (NASDAQ: SFIX) compete with one another, the two companies show few commonalities. One acts as a large, generalized retailer, while the other focuses exclusively on clothing choices tailored explicitly for individuals. That difference may ultimately drive higher returns for one of these consumer-focused companies.

Image source: Getty Images.

Indeed, size affects how the two companies compete. As a mega-retailer with a $170 billion market cap, Costco depends partially on clothing sales and promotes its "quality customized apparel everyone will love."

Continue reading

Source Fool.com