Torrid (NYSE:CURV – Get Free Report) and Fast Retailing (OTCMKTS:FRCOY – Get Free Report) are both consumer cyclical companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, earnings, valuation and risk.
Earnings and Valuation
This table compares Torrid and Fast Retailing”s gross revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Torrid | $1.13 billion | 0.36 | $11.62 million | $0.11 | 35.45 |
Fast Retailing | N/A | N/A | N/A | $99.47 | 0.36 |
Torrid has higher revenue and earnings than Fast Retailing. Fast Retailing is trading at a lower price-to-earnings ratio than Torrid, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Torrid | 1 | 2 | 2 | 0 | 2.20 |
Fast Retailing | 0 | 0 | 0 | 0 | N/A |
Torrid currently has a consensus price target of $6.44, suggesting a potential upside of 65.06%. Given Torrid’s higher probable upside, analysts clearly believe Torrid is more favorable than Fast Retailing.
Insider & Institutional Ownership
81.8% of Torrid shares are held by institutional investors. Comparatively, 0.0% of Fast Retailing shares are held by institutional investors. 9.8% of Torrid shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Profitability
This table compares Torrid and Fast Retailing’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Torrid | 1.21% | -6.77% | 2.80% |
Fast Retailing | N/A | N/A | N/A |
Summary
Torrid beats Fast Retailing on 8 of the 10 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 Fast Retailing
Fast Retailing Co., Ltd., through its subsidiaries, operates as an apparel designer and retailer in Japan and internationally. The company operates through UNIQLO Japan, UNIQLO International, GU, and Global Brands segments. It manufactures and retails clothing for men, women, children, and babies, as well as offers shoes and other goods and items. The company operates stores and franchises under the UNIQLO, GU, PLST, Theory, COMPTOIR DES COTONNIERS, J Brand, and PRINCESSE TAM.TAM brand names. It also sells its products through online; and provides real estate leasing services. The company was formerly known as Ogori Shoji Co., Ltd. and changed its name to Fast Retailing Co., Ltd. in September 1991. Fast Retailing Co., Ltd. was founded in 1949 and is headquartered in Yamaguchi, Japan.
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