Torrid (NYSE:CURV) and Industria de Diseno Textil (OTCMKTS:IDEXY) Critical Survey

Industria de Diseno Textil (OTCMKTS:IDEXY) and Torrid (NYSE:CURV) are both retail/wholesale companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, dividends, profitability, institutional ownership, risk, analyst recommendations and valuation.

Earnings & Valuation

This table compares Industria de Diseno Textil and Torrid”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Industria de Diseno Textil	$41.81 billion	4.19	$6.32 billion	$0.52	27.02
Torrid	$1.10 billion	0.11	$16.32 million	$0.04	31.75

Industria de Diseno Textil has higher revenue and earnings than Torrid. Industria de Diseno Textil is trading at a lower price-to-earnings ratio than Torrid, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Industria de Diseno Textil has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500. Comparatively, Torrid has a beta of 1.48, meaning that its share price is 48% more volatile than the S&P 500.

Profitability

This table compares Industria de Diseno Textil and Torrid’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Industria de Diseno Textil	15.15%	32.32%	16.84%
Torrid	0.30%	-1.69%	0.70%

Analyst Recommendations

This is a summary of recent ratings and target prices for Industria de Diseno Textil and Torrid, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Industria de Diseno Textil	0	0	1	4	3.80
Torrid	3	4	1	0	1.75

Torrid has a consensus target price of $3.03, suggesting a potential upside of 138.19%. Given Torrid’s higher probable upside, analysts plainly believe Torrid is more favorable than Industria de Diseno Textil.

Institutional & Insider Ownership

81.8% of Torrid shares are held by institutional investors. 5.9% of Torrid shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Industria de Diseno Textil beats Torrid on 9 of the 14 factors compared between the two stocks.

About Industria de Diseno Textil

Industria de Diseño Textil, S.A. engages in the retail and online distribution of clothing, footwear, accessories, and household products. The company sells its products under the Zara, Pull & Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, and Zara Home brands. It is also involved in the textile manufacturing, logistics, design, insurance, construction, and real estate businesses, as well as provides financial services. The company operates in Spain, rest of Europe, the Americas, Asia, and internationally. Industria de Diseño Textil, S.A. was founded in 1963 and is headquartered in A Coruña, Spain.

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.