Head-To-Head Survey: Rent the Runway (NASDAQ:RENT) versus Cache (OTCMKTS:CACH)

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

Insider and Institutional Ownership

73.1% of Rent the Runway shares are held by institutional investors. 23.0% of Cache shares are held by company insiders. Comparatively, 8.2% of Rent the Runway shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cache	N/A	N/A	N/A
Rent the Runway	3.37%	N/A	-36.65%

Earnings and Valuation

This table compares Cache and Rent the Runway”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cache	N/A	N/A	N/A	N/A	N/A
Rent the Runway	$306.20 million	0.63	-$69.90 million	($2.92)	-1.98

Cache has higher earnings, but lower revenue than Rent the Runway.

Analyst Recommendations

This is a breakdown of recent recommendations for Cache and Rent the Runway, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cache	0	0	1	0	3.00
Rent the Runway	1	2	0	0	1.67

Given Cache’s stronger consensus rating and higher possible upside, equities analysts plainly believe Cache is more favorable than Rent the Runway.

Summary

Cache beats Rent the Runway on 5 of the 8 factors compared between the two stocks.

About Cache

Cache, Inc., together with its subsidiaries, operates as a mall-based and online woman’s specialty retailer of apparel and accessories in the United States. The company designs and markets sportswear, such as tops, sweaters, and jackets and bottoms for day or evening events; dresses ranges from shorter lengths to long for day, evening, and events; and accessories, including jewelry, belts, scarves, and handbags under the Cache brand name. The company was founded in 1975 and is headquartered in New York, New York.

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.