Rent the Runway (NASDAQ:RENT – Get Free Report) and Bath & Body Works (NYSE:BBWI – Get Free Report) are both retail/wholesale companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, risk, analyst recommendations, valuation, institutional ownership and profitability.
Profitability
This table compares Rent the Runway and Bath & Body Works’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Rent the Runway | -26.60% | N/A | -28.93% |
| Bath & Body Works | 12.43% | -44.03% | 14.45% |
Analyst Recommendations
This is a summary of recent ratings and target prices for Rent the Runway and Bath & Body Works, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Rent the Runway | 0 | 0 | 3 | 0 | 3.00 |
| Bath & Body Works | 0 | 5 | 13 | 0 | 2.72 |
Risk and Volatility
Rent the Runway has a beta of 1.32, meaning that its stock price is 32% more volatile than the S&P 500. Comparatively, Bath & Body Works has a beta of 1.89, meaning that its stock price is 89% more volatile than the S&P 500.
Valuation & Earnings
This table compares Rent the Runway and Bath & Body Works”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Rent the Runway | $305.60 million | 0.06 | -$113.20 million | ($22.16) | -0.21 |
| Bath & Body Works | $7.31 billion | 0.90 | $878.00 million | $3.64 | 8.41 |
Bath & Body Works has higher revenue and earnings than Rent the Runway. Rent the Runway is trading at a lower price-to-earnings ratio than Bath & Body Works, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
73.1% of Rent the Runway shares are owned by institutional investors. Comparatively, 95.1% of Bath & Body Works shares are owned by institutional investors. 6.6% of Rent the Runway shares are owned by company insiders. Comparatively, 0.3% of Bath & Body Works shares are owned 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.
Summary
Bath & Body Works beats Rent the Runway on 10 of the 14 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 Bath & Body Works
Bath & Body Works, Inc. is a specialty retailers and home to America’s Favorite Fragrances, offering a breadth of exclusive fragrances for the body and home, including the selling collections for fine fragrance mist, body lotion and body cream, 3-wick candles, home fragrance diffusers and liquid hand soap. The company was founded by Leslie Herbert Wexner in 1963 and is headquartered in Columbus, OH.
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