Critical Survey: ContextLogic (NASDAQ:WISH) vs. ASOS (OTCMKTS:ASOMF)

ContextLogic (NASDAQ:WISH) and ASOS (OTCMKTS:ASOMF) are both consumer cyclical companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, institutional ownership, risk and valuation.

Insider and Institutional Ownership

46.0% of ContextLogic shares are held by institutional investors. Comparatively, 28.2% of ASOS shares are held by institutional investors. 8.2% of ContextLogic shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations for ContextLogic and ASOS, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ContextLogic	0	2	0	0	2.00
ASOS	0	0	0	0	N/A

Profitability

This table compares ContextLogic and ASOS’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ContextLogic	-131.05%	-115.96%	-62.36%
ASOS	N/A	N/A	N/A

Valuation and Earnings

This table compares ContextLogic and ASOS’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ContextLogic	$287.00 million	0.48	-$317.00 million	($11.98)	-0.47
ASOS	N/A	N/A	N/A	$0.45	10.45

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

Summary

ASOS beats ContextLogic on 5 of the 8 factors compared between the two stocks.

About ContextLogic

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 consumers to merchants. It also provides marketplace and logistics services to merchants. ContextLogic Inc. was incorporated in 2010 and is headquartered in San Francisco, California.

About ASOS

ASOS Plc operates as an online fashion retailer in the United Kingdom, the United States, Australia, France, Germany, Spain, Italy, Sweden, the Netherlands, Denmark, Poland, and internationally. It offers womenswear and menswear products. The company sells its products under the ASOS Design, ASOS Edition, ASOS Luxe, ASOS 4505, Collusion, Reclaimed Vintage, Topshop, Topman, Miss Selfridge, HIIT, AsYou, Dark Future, UNRVLLD/SPPLY, Crooked Tongues, Daysocial, Actual, and Weekend Collective brands, as well as through third-party brands. It is also involved in the employer of marketing staff and payment processing businesses, as well as acts as a vehicle for issue of convertible bonds. ASOS Plc was incorporated in 2000 and is headquartered in London, the United Kingdom.