Rent the Runway (NASDAQ:RENT) versus Hennes & Mauritz (OTCMKTS:HNNMY) Head-To-Head Contrast

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

Institutional & Insider Ownership

0.0% of Hennes & Mauritz shares are owned by institutional investors. Comparatively, 73.1% of Rent the Runway shares are owned by institutional investors. 8.2% of Rent the Runway shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility & Risk

Hennes & Mauritz has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500. Comparatively, Rent the Runway has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Hennes & Mauritz	4.80%	26.34%	6.32%
Rent the Runway	3.37%	N/A	-36.65%

Valuation & Earnings

This table compares Hennes & Mauritz and Rent the Runway”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hennes & Mauritz	$22.18 billion	1.24	$1.11 billion	$0.14	27.79
Rent the Runway	$306.20 million	0.85	-$69.90 million	($2.92)	-2.66

Hennes & Mauritz has higher revenue and earnings than Rent the Runway. Rent the Runway is trading at a lower price-to-earnings ratio than Hennes & Mauritz, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Hennes & Mauritz and Rent the Runway, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hennes & Mauritz	0	6	0	1	2.29
Rent the Runway	1	2	0	0	1.67

Summary

Hennes & Mauritz beats Rent the Runway on 10 of the 13 factors compared between the two stocks.

About Hennes & Mauritz

H & M Hennes & Mauritz AB (publ) provides clothing, accessories, footwear, cosmetics, home textiles, and homeware for women, men, and children worldwide. It offers sportswear, shoes, bags, beauty products, activewear, jeans, and ready-to-wear; and interior products, including bed linens, dinnerware, textiles, furniture, and lighting. The company provides its products under the H&M, H&M HOME, H&M Move, H&M Beauty, COS, Weekday, Monki, & Other Stories, ARKET, Afound, and Singular Society brand names. In addition, it operates Sellpy, a broad digital platform for second-hand fashion and other products; and Creator Studio, a global platform for merchandise design and production, as well as provides solutions to extend the useful life of unwanted garments through reuse and recycling under Looper Textile name. The company offers its products through online and physical stores. H & M Hennes & Mauritz AB (publ) was incorporated in 1943 and is headquartered in Stockholm, Sweden.

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.