Critical Comparison: Torrid (NYSE:CURV) and Stein Mart (OTCMKTS:SMRTQ)

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

Valuation and Earnings

This table compares Stein Mart 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
Stein Mart	N/A	N/A	N/A	N/A	N/A
Torrid	$1.04 billion	0.10	$16.32 million	($0.01)	-101.50

Torrid has higher revenue and earnings than Stein Mart.

Analyst Ratings

This is a summary of current ratings and target prices for Stein Mart and Torrid, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stein Mart	0	0	0	0	0.00
Torrid	3	4	1	0	1.75

Torrid has a consensus price target of $1.44, suggesting a potential upside of 41.87%. Given Torrid’s stronger consensus rating and higher probable upside, analysts plainly believe Torrid is more favorable than Stein Mart.

Profitability

This table compares Stein Mart and Torrid’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Stein Mart	N/A	N/A	N/A
Torrid	-0.18%	-1.69%	-0.43%

Insider and Institutional Ownership

81.8% of Torrid shares are held by institutional investors. 39.4% of Stein Mart shares are held by insiders. Comparatively, 5.9% of Torrid shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Torrid beats Stein Mart on 5 of the 9 factors compared between the two stocks.

About Stein Mart

Stein Mart, Inc., a specialty omnichannel off-price retailer, offers designer and name-brand fashion apparels, home décor merchandise, accessories, and shoes at everyday discount prices in the United States. The company's stores also provides endless aisle, a mobile technology to locate products; a SMart Rewards loyalty program; co-branded and private label credit card programs; and electronic gift cards. As of June 3, 2020, it operated 281 stores in 30 states. The company also sells its products through an online retail selling site. Stein Mart, Inc. was founded in 1908 and is headquartered in Jacksonville, Florida. On August 12, 2020, Stein Mart, Inc., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Middle District of Florida.

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.