Abercrombie & Fitch (NYSE:ANF) versus Rent the Runway (NASDAQ:RENT) Head to Head Review

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Rent the Runway	-28.00%	N/A	-35.49%
Abercrombie & Fitch	10.61%	40.02%	15.80%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Rent the Runway and Abercrombie & Fitch, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rent the Runway	1	2	1	0	2.00
Abercrombie & Fitch	1	5	5	0	2.36

Rent the Runway presently has a consensus price target of $40.00, suggesting a potential upside of 802.93%. Abercrombie & Fitch has a consensus price target of $102.56, suggesting a potential upside of 47.04%. Given Rent the Runway’s higher probable upside, equities research analysts plainly believe Rent the Runway is more favorable than Abercrombie & Fitch.

Valuation & Earnings

This table compares Rent the Runway and Abercrombie & Fitch”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rent the Runway	$306.20 million	0.06	-$69.90 million	($21.51)	-0.21
Abercrombie & Fitch	$5.10 billion	0.64	$566.22 million	$10.57	6.60

Abercrombie & Fitch has higher revenue and earnings than Rent the Runway. Rent the Runway is trading at a lower price-to-earnings ratio than Abercrombie & Fitch, 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. 8.2% of Rent the Runway shares are owned by insiders. Comparatively, 2.3% of Abercrombie & Fitch shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

Rent the Runway has a beta of 1.35, suggesting that its share price is 35% more volatile than the S&P 500. Comparatively, Abercrombie & Fitch has a beta of 1.44, suggesting that its share price is 44% more volatile than the S&P 500.

Summary

Abercrombie & Fitch beats Rent the Runway on 11 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 Abercrombie & Fitch

Abercrombie & Fitch Co. engages in the retail of apparel, personal care products, and accessories. The firm operates through following geographical segments: Americas, EMEA and APAC. The Americas segment includes operations in North America and South America. The EMEA segment includes operations in Europe, the Middle East and Africa. The APAC segment includes operations in the Asia-Pacific region, including Asia and Oceania. The company was founded by David Abercrombie in 1892 and is headquartered in New Albany, OH.