Reviewing Torrid (NYSE:CURV) and Esprit (OTCMKTS:ESPGY)

Esprit (OTCMKTS:ESPGY) and Torrid (NYSE:CURV) are both retail/wholesale companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, institutional ownership, dividends, risk, analyst recommendations, earnings and valuation.

Valuation and Earnings

This table compares Esprit and Torrid”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Esprit	$5.38 million	0.30	-$157.30 million	N/A	N/A
Torrid	$1.10 billion	0.09	$16.32 million	($0.01)	-104.00

Torrid has higher revenue and earnings than Esprit.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Esprit	N/A	N/A	N/A
Torrid	-0.18%	-1.69%	-0.43%

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 endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and price targets for Esprit and Torrid, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Esprit	0	0	0	0	0.00
Torrid	3	4	1	0	1.75

Torrid has a consensus price target of $1.44, indicating a potential upside of 38.46%. Given Torrid’s stronger consensus rating and higher possible upside, analysts clearly believe Torrid is more favorable than Esprit.

Summary

Torrid beats Esprit on 7 of the 11 factors compared between the two stocks.

About Esprit

Esprit Holdings Limited, an investment holding company, engages in retail and wholesale distribution, and licensing of fashion and non-apparel products. It operates through Europe; Asia; E-shop; and Corporate Services, Sourcing, Licensing and Others segments. The company offers apparel and accessories under the ESPRIT brand name through retail stores and e-commerce platforms. It is also involved in the sourcing, purchasing, distributing, and sale of merchandise; provision of financial and treasury services, as well as logistic services comprising customs dealing and quality control; design and image directions; and conceptualization and development of global uniform image businesses. Esprit Holdings Limited was founded in 1968 and is headquartered in North Point, Hong Kong.

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.