Contrasting Torrid (NYSE:CURV) & Burberry Group (OTCMKTS:BURBY)

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

Risk and Volatility

Torrid has a beta of 1.47, suggesting that its stock price is 47% more volatile than the S&P 500. Comparatively, Burberry Group has a beta of 1.17, suggesting that its stock price is 17% more volatile than the S&P 500.

Institutional & Insider Ownership

81.8% of Torrid shares are held by institutional investors. Comparatively, 10.3% of Burberry Group shares are held by institutional investors. 9.8% of Torrid shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and price targets for Torrid and Burberry Group, as provided by MarketBeat.

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

Torrid currently has a consensus target price of $3.03, suggesting a potential upside of 131.62%. Given Torrid’s higher probable upside, equities analysts clearly believe Torrid is more favorable than Burberry Group.

Valuation & Earnings

This table compares Torrid and Burberry Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Torrid	$1.10 billion	0.12	$16.32 million	$0.04	32.65
Burberry Group	$3.14 billion	1.77	-$95.68 million	N/A	N/A

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

Profitability

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

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

Summary

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

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.

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.