Head to Head Comparison: Rent the Runway (NASDAQ:RENT) versus ON (NYSE:ONON)

Rent the Runway (NASDAQ:RENT) and ON (NYSE:ONON) are both retail/wholesale companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, risk, profitability, earnings, dividends, analyst recommendations and valuation.

Earnings & Valuation

This table compares Rent the Runway and ON”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rent the Runway	$306.20 million	0.65	-$69.90 million	($2.92)	-2.04
ON	$2.63 billion	10.79	$275.23 million	$0.77	58.79

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

Risk & Volatility

Rent the Runway has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500. Comparatively, ON has a beta of 2.15, suggesting that its stock price is 115% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for Rent the Runway and ON, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rent the Runway	1	2	0	0	1.67
ON	2	2	17	3	2.88

ON has a consensus price target of $59.86, suggesting a potential upside of 32.25%. Given ON’s stronger consensus rating and higher possible upside, analysts clearly believe ON is more favorable than Rent the Runway.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Rent the Runway	3.37%	N/A	-36.65%
ON	7.45%	14.81%	8.48%

Institutional & Insider Ownership

73.1% of Rent the Runway shares are held by institutional investors. Comparatively, 36.4% of ON shares are held by institutional investors. 8.2% of Rent the Runway shares are held by insiders. Comparatively, 68.6% of ON shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

ON beats Rent the Runway on 14 of the 15 factors compared between the two stocks.

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.

About ON

On Holding AG engages in the development and distribution of sports products such as footwear, apparel, and accessories for high-performance running, outdoor, all-day activities, and tennis. It sells its products worldwide through independent retailers and global distributors, its own online presence, and its own stores. The company was founded by David Allemann, Olivier Bernhard, and Caspar Coppetti in January 2010 and is headquartered in Zurich, Switzerland.