Financial Contrast: Rent the Runway (NASDAQ:RENT) and Cache (OTCMKTS:CACH)

Rent the Runway (NASDAQ:RENT) and Cache (OTCMKTS:CACH) are both retail/wholesale companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, earnings, risk, valuation, analyst recommendations and institutional ownership.

Institutional and Insider Ownership

73.1% of Rent the Runway shares are owned by institutional investors. 8.2% of Rent the Runway shares are owned by company insiders. Comparatively, 23.0% of Cache shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and price targets for Rent the Runway and Cache, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rent the Runway	1	2	0	0	1.67
Cache	0	0	1	0	3.00

Given Cache’s stronger consensus rating and higher possible upside, analysts clearly believe Cache is more favorable than Rent the Runway.

Profitability

This table compares Rent the Runway and Cache’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%
Cache	N/A	N/A	N/A

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rent the Runway	$306.20 million	0.74	-$69.90 million	($2.92)	-2.33
Cache	N/A	N/A	N/A	N/A	N/A

Cache has lower revenue, but higher earnings than Rent the Runway.

Summary

Cache beats Rent the Runway on 5 of the 8 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 Cache

Cache, Inc., together with its subsidiaries, operates as a mall-based and online woman’s specialty retailer of apparel and accessories in the United States. The company designs and markets sportswear, such as tops, sweaters, and jackets and bottoms for day or evening events; dresses ranges from shorter lengths to long for day, evening, and events; and accessories, including jewelry, belts, scarves, and handbags under the Cache brand name. The company was founded in 1975 and is headquartered in New York, New York.