Levi Strauss & Co. (NYSE:LEVI – Get Free Report) and Rent the Runway (NASDAQ:RENT – Get Free Report) are both retail/wholesale companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, valuation, risk, earnings, institutional ownership and dividends.
Insider & Institutional Ownership
69.1% of Levi Strauss & Co. shares are held by institutional investors. Comparatively, 73.1% of Rent the Runway shares are held by institutional investors. 1.1% of Levi Strauss & Co. shares are held by company insiders. Comparatively, 0.4% of Rent the Runway shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Earnings & Valuation
This table compares Levi Strauss & Co. and Rent the Runway”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Levi Strauss & Co. | $6.28 billion | 1.48 | $578.10 million | $1.62 | 14.93 |
| Rent the Runway | $329.80 million | 0.32 | $22.60 million | $6.49 | 0.48 |
Levi Strauss & Co. has higher revenue and earnings than Rent the Runway. Rent the Runway is trading at a lower price-to-earnings ratio than Levi Strauss & Co., indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent ratings and price targets for Levi Strauss & Co. and Rent the Runway, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Levi Strauss & Co. | 0 | 3 | 12 | 0 | 2.80 |
| Rent the Runway | 1 | 0 | 0 | 0 | 1.00 |
Levi Strauss & Co. presently has a consensus price target of $27.46, indicating a potential upside of 13.52%. Given Levi Strauss & Co.’s stronger consensus rating and higher probable upside, equities analysts plainly believe Levi Strauss & Co. is more favorable than Rent the Runway.
Profitability
This table compares Levi Strauss & Co. and Rent the Runway’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Levi Strauss & Co. | 9.66% | 25.79% | 8.61% |
| Rent the Runway | 8.51% | N/A | -30.10% |
Volatility and Risk
Levi Strauss & Co. has a beta of 1.33, indicating that its stock price is 33% more volatile than the S&P 500. Comparatively, Rent the Runway has a beta of 1.19, indicating that its stock price is 19% more volatile than the S&P 500.
Summary
Levi Strauss & Co. beats Rent the Runway on 12 of the 14 factors compared between the two stocks.
About Levi Strauss & Co.
Levi Strauss & Co. engages in the design, marketing, and sale of apparel products. The company offers jeans, casual and dress pants, tops, shorts, skirts, jackets, footwear, and related accessories. It operates through the following geographical segments: Americas, Europe, and Asia. The company was founded by Levi Strauss in 1853 and is headquartered in San Francisco, CA.
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.
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