Financial Analysis: Torrid (NYSE:CURV) & Boot Barn (NYSE:BOOT)

Torrid (NYSE:CURV) and Boot Barn (NYSE:BOOT) are both retail/wholesale companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, earnings, risk, profitability, valuation and dividends.

Institutional and Insider Ownership

81.8% of Torrid shares are held by institutional investors. 9.8% of Torrid shares are held by insiders. Comparatively, 0.7% of Boot Barn shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for Torrid and Boot Barn, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Torrid	3	4	1	0	1.75
Boot Barn	0	2	12	0	2.86

Torrid presently has a consensus target price of $1.44, suggesting a potential downside of 16.52%. Boot Barn has a consensus target price of $226.92, suggesting a potential upside of 44.81%. Given Boot Barn’s stronger consensus rating and higher possible upside, analysts plainly believe Boot Barn is more favorable than Torrid.

Valuation & Earnings

This table compares Torrid and Boot Barn”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Torrid	$1.00 billion	0.17	-$7.03 million	($0.12)	-14.38
Boot Barn	$2.25 billion	2.11	$225.88 million	$7.35	21.32

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

Profitability

This table compares Torrid and Boot Barn’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Torrid	-1.28%	N/A	-3.10%
Boot Barn	10.02%	18.15%	9.82%

Volatility and Risk

Torrid has a beta of 0.89, suggesting that its share price is 11% less volatile than the S&P 500. Comparatively, Boot Barn has a beta of 1.69, suggesting that its share price is 69% more volatile than the S&P 500.

Summary

Boot Barn beats Torrid on 12 of the 14 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 Boot Barn

Boot Barn Holdings, Inc., a lifestyle retail chain, operates specialty retail stores in the United States. The company's specialty retail stores offer western and work-related footwear, apparel, and accessories for men, women, and kids. It offers boots, shirts, jackets, hats, belts and belt buckles, handbags, western-style jewelry, rugged footwear, outerwear, overalls, denim, and flame-resistant and high-visibility clothing. The company also provides gifts and home merchandise. The company also sells its products through e-commerce websites, including bootbarn.com; sheplers.com; and countryoutfitter.com. The company was formerly known as WW Top Investment Corporation and changed its name to Boot Barn Holdings, Inc. in June 2014. Boot Barn Holdings, Inc. was founded in 1978 and is based in Irvine, California.