Torrid (NYSE:CURV) vs. Rent the Runway (NASDAQ:RENT) Financial Contrast

Torrid (NYSE:CURV) and Rent the Runway (NASDAQ:RENT) are both small-cap retail/wholesale companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, analyst recommendations, earnings and risk.

Institutional and Insider Ownership

81.8% of Torrid shares are owned by institutional investors. Comparatively, 73.1% of Rent the Runway shares are owned by institutional investors. 5.9% of Torrid shares are owned by insiders. Comparatively, 8.2% of Rent the Runway shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Risk & Volatility

Torrid has a beta of 1.48, meaning that its stock price is 48% more volatile than the S&P 500. Comparatively, Rent the Runway has a beta of 1.35, meaning that its stock price is 35% more volatile than the S&P 500.

Profitability

This table compares Torrid and Rent the Runway’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Torrid	0.30%	-1.69%	0.70%
Rent the Runway	-28.00%	N/A	-35.49%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Torrid and Rent the Runway, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Torrid	4	3	1	0	1.63
Rent the Runway	1	2	1	0	2.00

Torrid currently has a consensus target price of $3.03, suggesting a potential upside of 153.14%. Rent the Runway has a consensus target price of $40.00, suggesting a potential upside of 910.10%. Given Rent the Runway’s stronger consensus rating and higher probable upside, analysts plainly believe Rent the Runway is more favorable than Torrid.

Valuation and Earnings

This table compares Torrid and Rent the Runway”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Torrid	$1.10 billion	0.11	$16.32 million	$0.04	29.88
Rent the Runway	$306.20 million	0.05	-$69.90 million	($21.51)	-0.18

Torrid has higher revenue and earnings than Rent the Runway. Rent the Runway is trading at a lower price-to-earnings ratio than Torrid, indicating that it is currently the more affordable of the two stocks.

Summary

Torrid beats Rent the Runway on 9 of the 13 factors compared between the two stocks.

About Torrid

Torrid Holdings Inc. operates in women’s plus-size apparel and intimates market in North America. The company designs, develops, and merchandises its products under the Torrid, Torrid Curve, CURV, and Lovesick brand names. It is involved in the sale of tops, bottoms, dresses, denims, activewear, intimates, sleep wear, swim wear, and outerwear products; and non-apparel products comprising accessories, footwear, and beauty products. The company sells its products directly to consumers through its e-commerce platform and its physical stores. Torrid Holdings Inc. was incorporated in 2019 and is headquartered in City Of Industry, California.

About Rent the Runway

Rent the Runway, Inc. operates shared designer closet in the United States. The company offers evening wear and accessories, ready-to-wear, workwear, denim, casual, maternity, outerwear, blouses, knitwear, loungewear, jewelry, handbags, activewear, and ski wear under subscription, rental, and resale offering. It also engages in the software development and support activities. Rent the Runway, Inc. was incorporated in 2009 and is headquartered in Brooklyn, New York.