Financial Review: Torrid (NYSE:CURV) versus Capri (NYSE:CPRI)

Torrid (NYSE:CURV) and Capri (NYSE:CPRI) are both retail/wholesale companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, profitability, valuation, dividends and risk.

Risk and Volatility

Torrid has a beta of 1.47, suggesting that its share price is 47% more volatile than the S&P 500. Comparatively, Capri has a beta of 1.48, suggesting that its share price is 48% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for Torrid and Capri, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Torrid	3	4	1	0	1.75
Capri	1	6	7	1	2.53

Torrid presently has a consensus price target of $3.03, suggesting a potential upside of 131.62%. Capri has a consensus price target of $24.69, suggesting a potential downside of 1.79%. Given Torrid’s higher possible upside, analysts plainly believe Torrid is more favorable than Capri.

Earnings & Valuation

This table compares Torrid and Capri”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Torrid	$1.10 billion	0.12	$16.32 million	$0.04	32.65
Capri	$4.44 billion	0.67	-$1.18 billion	($9.83)	-2.56

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

Profitability

This table compares Torrid and Capri’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Torrid	0.30%	-1.69%	0.70%
Capri	-29.55%	-138.53%	-8.48%

Institutional and Insider Ownership

81.8% of Torrid shares are owned by institutional investors. Comparatively, 84.3% of Capri shares are owned by institutional investors. 9.8% of Torrid shares are owned by insiders. Comparatively, 2.3% of Capri shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Torrid beats Capri on 8 of the 15 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 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.