Rent the Runway (NASDAQ:RENT) vs. Buckle (NYSE:BKE) Financial Contrast

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Buckle	16.85%	47.35%	21.36%
Rent the Runway	8.51%	N/A	-30.10%

Risk and Volatility

Buckle has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500. Comparatively, Rent the Runway has a beta of 1.19, indicating that its stock price is 19% more volatile than the S&P 500.

Valuation & Earnings

This table compares Buckle and Rent the Runway”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Buckle	$1.30 billion	1.69	$209.74 million	$4.36	9.75
Rent the Runway	$329.80 million	0.32	$22.60 million	$6.49	0.49

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

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Buckle	0	2	0	0	2.00
Rent the Runway	1	0	0	0	1.00

Buckle presently has a consensus price target of $47.00, indicating a potential upside of 10.55%. Given Buckle’s stronger consensus rating and higher probable upside, equities analysts clearly believe Buckle is more favorable than Rent the Runway.

Institutional & Insider Ownership

53.9% of Buckle shares are owned by institutional investors. Comparatively, 73.1% of Rent the Runway shares are owned by institutional investors. 38.4% of Buckle shares are owned by insiders. Comparatively, 0.4% of Rent the Runway shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Buckle beats Rent the Runway on 10 of the 13 factors compared between the two stocks.

About Buckle

The Buckle, Inc. operates as a retailer of casual apparel, footwear, and accessories for young men and women in the United States. It markets a selection of brand name casual apparel, including denims, other casual bottoms, tops, sportswear, outerwear, accessories, and footwear, as well as private label merchandise primarily comprising BKE, Buckle Black, Salvage, Red by BKE, Daytrip, Gimmicks, Gilded Intent, FITZ + EDDI, Willow & Root, Outpost Makers, Departwest, Sterling & Stitch, Reclaim, BKE Vintage, Nova Industries, J.B. Holt, Modish Rebel, Maven Co-op, and Veece. The company provides services, such as hemming, gift-packaging, layaways, guest loyalty program, the Buckle private label credit card, and personalized stylist services, as well as special order system that allows stores to obtain requested merchandise from other company stores or its online order fulfillment center. The Buckle, Inc. also sells its products through its website, buckle.com. The company was formerly known as Mills Clothing, Inc. and changed its name to The Buckle, Inc. in April 1991.The Buckle, Inc. was incorporated in 1948 and is headquartered in Kearney, Nebraska.

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.