Head-To-Head Review: Rent the Runway (RENT) vs. Its Competitors

Rent the Runway (NASDAQ:RENT) is one of 285 publicly-traded companies in the “Specialty Retail” industry, but how does it compare to its competitors? We will compare Rent the Runway to related companies based on the strength of its risk, dividends, analyst recommendations, earnings, institutional ownership, profitability and valuation.

Volatility & Risk

Rent the Runway has a beta of 1.24, meaning that its stock price is 24% more volatile than the S&P 500. Comparatively, Rent the Runway’s competitors have a beta of 1.66, meaning that their average stock price is 66% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Rent the Runway and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rent the Runway	1	0	0	0	1.00
Rent the Runway Competitors	3658	15545	21583	577	2.46

As a group, “Specialty Retail” companies have a potential upside of 9.05%. Given Rent the Runway’s competitors stronger consensus rating and higher possible upside, analysts clearly believe Rent the Runway has less favorable growth aspects than its competitors.

Valuation & Earnings

This table compares Rent the Runway and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Rent the Runway	$329.80 million	$22.60 million	0.20
Rent the Runway Competitors	$7.10 billion	$386.47 million	39.44

Rent the Runway’s competitors have higher revenue and earnings than Rent the Runway. Rent the Runway is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Rent the Runway	11.80%	N/A	-21.89%
Rent the Runway Competitors	-3.67%	-14.10%	3.17%

Institutional and Insider Ownership

73.1% of Rent the Runway shares are held by institutional investors. Comparatively, 51.6% of shares of all “Specialty Retail” companies are held by institutional investors. 0.4% of Rent the Runway shares are held by insiders. Comparatively, 20.5% of shares of all “Specialty Retail” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Rent the Runway competitors beat Rent the Runway on 10 of the 13 factors compared.

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.