Financial Analysis: Torrid (NYSE:CURV) and Burberry Group (OTCMKTS:BURBY)

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

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Burberry Group and Torrid, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Burberry Group	0	1	0	4	3.60
Torrid	3	4	1	0	1.75

Torrid has a consensus price target of $3.03, indicating a potential upside of 138.19%. Given Torrid’s higher possible upside, analysts clearly believe Torrid is more favorable than Burberry Group.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Burberry Group	N/A	N/A	N/A
Torrid	0.30%	-1.69%	0.70%

Institutional and Insider Ownership

10.3% of Burberry Group shares are owned by institutional investors. Comparatively, 81.8% of Torrid shares are owned by institutional investors. 5.9% of Torrid shares are owned 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.

Risk and Volatility

Burberry Group has a beta of 1.32, meaning that its share price is 32% more volatile than the S&P 500. Comparatively, Torrid has a beta of 1.48, meaning that its share price is 48% more volatile than the S&P 500.

Valuation & Earnings

This table compares Burberry Group 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
Burberry Group	$3.14 billion	1.75	-$95.68 million	N/A	N/A
Torrid	$1.10 billion	0.11	$16.32 million	$0.04	31.75

Torrid has lower revenue, but higher earnings than Burberry Group.

Summary

Torrid beats Burberry Group on 8 of the 13 factors compared between the two stocks.

About Burberry Group

Burberry Group plc, together with its subsidiaries, manufactures, retails, and wholesales luxury goods under the Burberry brand. The company operates in two segments, Retail/Wholesale and Licensing. It provides womenswear, menswear, childrenswear, beauty, eyewear, shoes, and accessories, as well as leather goods, such as bags. The company also licenses third parties to manufacture and distribute products using the Burberry trademarks. It sells its products through Burberry mainline stores, concessions, outlets, digital commerce, Burberry franchisees, department stores, and multi-brand specialty accounts, as well as through Burberry.com website. It operates in the Asia Pacific, Europe, the Middle East, India, Africa, and the Americas. The company was founded in 1856 and is headquartered in London, the United Kingdom.

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.