Capri (NYSE:CPRI) & Rent the Runway (NASDAQ:RENT) Head-To-Head Contrast

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Capri	3.94%	664.22%	4.10%
Rent the Runway	8.51%	N/A	-30.10%

Institutional & Insider Ownership

84.3% of Capri shares are held by institutional investors. Comparatively, 73.1% of Rent the Runway shares are held by institutional investors. 2.3% of Capri shares are held by company insiders. Comparatively, 0.4% of Rent the Runway shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and price targets for Capri and Rent the Runway, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Capri	1	8	6	1	2.44
Rent the Runway	1	0	0	0	1.00

Capri presently has a consensus target price of $24.79, suggesting a potential upside of 22.09%. Given Capri’s stronger consensus rating and higher probable upside, research analysts clearly believe Capri is more favorable than Rent the Runway.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Capri	$3.47 billion	0.67	$137.00 million	$1.14	17.81
Rent the Runway	$329.80 million	0.35	$22.60 million	$6.49	0.52

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

Volatility and Risk

Capri has a beta of 1.4, indicating that its stock price is 40% more volatile than the S&P 500. Comparatively, Rent the Runway has a beta of 1.17, indicating that its stock price is 17% more volatile than the S&P 500.

Summary

Capri beats Rent the Runway on 13 of the 15 factors compared between the two stocks.

About Capri

Capri Holdings Limited designs, markets, distributes, and retails branded women's and men's apparel, footwear, and accessories in the United States, Canada, Latin America, Europe, the Middle East, Africa, and Asia. It operates through three segments: Versace, Jimmy Choo, and Michael Kors. The company offers ready-to-wear, accessories, footwear, handbags, scarves and belts, small leather goods, eyewear, watches, jewelry, fragrances, and home furnishings through a distribution network, including boutiques, department, and specialty stores, as well as through e-commerce sites. It also engages in licensing agreements to the manufacture and sale of watches, jewelry, eyewear, and fragrances. The company was formerly known as Michael Kors Holdings Limited and changed its name to Capri Holdings Limited in December 2018. Capri Holdings Limited was founded in 1981 and is headquartered in London, the United Kingdom.

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.