Rent the Runway (NASDAQ:RENT – Get Free Report) and Levi Strauss & Co. (NYSE:LEVI – Get Free Report) are both retail/wholesale companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, analyst recommendations, risk and valuation.
Insider & Institutional Ownership
73.1% of Rent the Runway shares are held by institutional investors. Comparatively, 69.1% of Levi Strauss & Co. shares are held by institutional investors. 0.4% of Rent the Runway shares are held by insiders. Comparatively, 1.1% of Levi Strauss & Co. shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Profitability
This table compares Rent the Runway and Levi Strauss & Co.’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Rent the Runway | 8.51% | N/A | -30.10% |
| Levi Strauss & Co. | 9.66% | 25.79% | 8.61% |
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Rent the Runway | $329.80 million | 0.31 | $22.60 million | $6.49 | 0.47 |
| Levi Strauss & Co. | $6.28 billion | 1.48 | $578.10 million | $1.62 | 14.87 |
Levi Strauss & Co. has higher revenue and earnings than Rent the Runway. Rent the Runway is trading at a lower price-to-earnings ratio than Levi Strauss & Co., indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Rent the Runway and Levi Strauss & Co., as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Rent the Runway | 1 | 0 | 0 | 0 | 1.00 |
| Levi Strauss & Co. | 0 | 3 | 12 | 0 | 2.80 |
Levi Strauss & Co. has a consensus target price of $27.46, indicating a potential upside of 14.03%. Given Levi Strauss & Co.’s stronger consensus rating and higher possible upside, analysts plainly believe Levi Strauss & Co. is more favorable than Rent the Runway.
Volatility & Risk
Rent the Runway has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500. Comparatively, Levi Strauss & Co. has a beta of 1.33, suggesting that its stock price is 33% more volatile than the S&P 500.
Summary
Levi Strauss & Co. beats Rent the Runway on 12 of the 14 factors compared between the two stocks.
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.
About Levi Strauss & Co.
Levi Strauss & Co. engages in the design, marketing, and sale of apparel products. The company offers jeans, casual and dress pants, tops, shorts, skirts, jackets, footwear, and related accessories. It operates through the following geographical segments: Americas, Europe, and Asia. The company was founded by Levi Strauss in 1853 and is headquartered in San Francisco, CA.
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