Head to Head Survey: Rent the Runway (NASDAQ:RENT) vs. Boot Barn (NYSE:BOOT)

Rent the Runway (NASDAQ:RENT) and Boot Barn (NYSE:BOOT) are both retail/wholesale companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, valuation, risk, institutional ownership, earnings, analyst recommendations and dividends.

Earnings and Valuation

This table compares Rent the Runway and Boot Barn”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rent the Runway	$329.80 million	0.37	$22.60 million	$0.48	7.63
Boot Barn	$2.25 billion	2.08	$225.88 million	$7.35	21.02

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

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Rent the Runway and Boot Barn, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rent the Runway	1	0	0	0	1.00
Boot Barn	0	2	12	0	2.86

Boot Barn has a consensus target price of $230.83, suggesting a potential upside of 49.41%. Given Boot Barn’s stronger consensus rating and higher probable upside, analysts clearly believe Boot Barn is more favorable than Rent the Runway.

Institutional & Insider Ownership

73.1% of Rent the Runway shares are owned by institutional investors. 8.2% of Rent the Runway shares are owned by insiders. Comparatively, 0.7% of Boot Barn shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Rent the Runway and Boot Barn’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rent the Runway	6.85%	N/A	-32.17%
Boot Barn	10.02%	18.15%	9.82%

Volatility & Risk

Rent the Runway has a beta of 1.23, meaning that its share price is 23% more volatile than the S&P 500. Comparatively, Boot Barn has a beta of 1.73, meaning that its share price is 73% more volatile than the S&P 500.

Summary

Boot Barn 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 Boot Barn

Boot Barn Holdings, Inc., a lifestyle retail chain, operates specialty retail stores in the United States. The company's specialty retail stores offer western and work-related footwear, apparel, and accessories for men, women, and kids. It offers boots, shirts, jackets, hats, belts and belt buckles, handbags, western-style jewelry, rugged footwear, outerwear, overalls, denim, and flame-resistant and high-visibility clothing. The company also provides gifts and home merchandise. The company also sells its products through e-commerce websites, including bootbarn.com; sheplers.com; and countryoutfitter.com. The company was formerly known as WW Top Investment Corporation and changed its name to Boot Barn Holdings, Inc. in June 2014. Boot Barn Holdings, Inc. was founded in 1978 and is based in Irvine, California.