Torrid (NYSE:CURV) & Li Ning (OTCMKTS:LNNGY) Critical Analysis

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

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Torrid and Li Ning, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Torrid	4	3	1	0	1.63
Li Ning	0	1	0	1	3.00

Torrid presently has a consensus target price of $1.44, suggesting a potential downside of 29.93%. Given Torrid’s higher possible upside, equities analysts plainly believe Torrid is more favorable than Li Ning.

Insider & Institutional Ownership

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Torrid	-0.70%	-1.69%	-1.69%
Li Ning	N/A	N/A	N/A

Valuation & Earnings

This table compares Torrid and Li Ning”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Torrid	$1.00 billion	0.20	-$7.03 million	($0.06)	-34.25
Li Ning	$4.12 billion	1.78	$408.41 million	N/A	N/A

Li Ning has higher revenue and earnings than Torrid.

Risk and Volatility

Torrid has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500. Comparatively, Li Ning has a beta of 0.52, suggesting that its stock price is 48% less volatile than the S&P 500.

Summary

Li Ning beats Torrid on 8 of the 13 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 Li Ning

Li Ning Company Limited, a sports brand company, engages in the research and development, design, manufacture, marketing, distribution, and retail of sporting goods in the People’s Republic of China. The company offers sporting goods, including professional and leisure footwear, apparel, equipment, and accessories under the LI-NING brand. It also develops, manufactures, markets, distributes, and/or sells outdoor sports products under the AIGLE brand; table tennis products under the Double Happiness brand name; fashionable fitness products for dance and yoga under the Danskin brand; and badminton products under the Kason brand name. The company also provides brand licensing, administrative, and property management services. It operates conventional stores, flagship stores, China LI-NING stores, LI-NING 1990 stores, factory outlets, and multi-brand stores under the LI-NING brand. The company was founded in 1990 and is headquartered in Beijing, the People’s Republic of China.