Analyzing ContextLogic (NASDAQ:WISH) and ASOS (OTCMKTS:ASOMF)

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

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	0.49	-$317.00 million	($11.98)	-0.48
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.

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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for ContextLogic and ASOS, as reported by MarketBeat.

	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

Insider & Institutional Ownership

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

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.