Rent the Runway (NASDAQ:RENT) & Capri (NYSE:CPRI) Head to Head Review

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rent the Runway	$329.80 million	0.32	$22.60 million	$6.49	0.48
Capri	$3.47 billion	0.62	$137.00 million	$1.14	16.54

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Rent the Runway	8.51%	N/A	-30.10%
Capri	3.94%	664.22%	4.10%

Insider & Institutional Ownership

73.1% of Rent the Runway shares are held by institutional investors. Comparatively, 84.3% of Capri shares are held by institutional investors. 0.4% of Rent the Runway shares are held by company insiders. Comparatively, 2.6% of Capri 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.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Rent the Runway and Capri, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rent the Runway	1	0	0	0	1.00
Capri	1	8	6	1	2.44

Capri has a consensus price target of $24.79, suggesting a potential upside of 31.45%. Given Capri’s stronger consensus rating and higher possible upside, analysts plainly believe Capri is more favorable than Rent the Runway.

Risk & Volatility

Rent the Runway has a beta of 1.17, suggesting that its stock price is 17% more volatile than the S&P 500. Comparatively, Capri has a beta of 1.4, suggesting that its stock price is 40% more volatile than the S&P 500.

Summary

Capri beats Rent the Runway on 13 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 Capri

Capri Holdings Limited designs, markets, distributes, and retails branded women's and men's apparel, footwear, and accessories in the United States, Canada, Latin America, Europe, the Middle East, Africa, and Asia. It operates through three segments: Versace, Jimmy Choo, and Michael Kors. The company offers ready-to-wear, accessories, footwear, handbags, scarves and belts, small leather goods, eyewear, watches, jewelry, fragrances, and home furnishings through a distribution network, including boutiques, department, and specialty stores, as well as through e-commerce sites. It also engages in licensing agreements to the manufacture and sale of watches, jewelry, eyewear, and fragrances. The company was formerly known as Michael Kors Holdings Limited and changed its name to Capri Holdings Limited in December 2018. Capri Holdings Limited was founded in 1981 and is headquartered in London, the United Kingdom.