Financial Review: Esprit (OTCMKTS:ESPGY) versus Torrid (NYSE:CURV)

Torrid (NYSE:CURV) and Esprit (OTCMKTS:ESPGY) are both small-cap retail/wholesale companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, risk, earnings, analyst recommendations and profitability.

Institutional and Insider Ownership

81.8% of Torrid shares are owned by institutional investors. 9.8% of Torrid shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Torrid and Esprit, as provided by MarketBeat.com.

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

Torrid currently has a consensus price target of $1.44, suggesting a potential upside of 43.28%. Given Torrid’s stronger consensus rating and higher probable upside, research analysts clearly believe Torrid is more favorable than Esprit.

Valuation and Earnings

This table compares Torrid and Esprit”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	0.09	$16.32 million	($0.01)	-100.50
Esprit	$5.38 million	0.46	-$157.30 million	N/A	N/A

Torrid has higher revenue and earnings than Esprit.

Profitability

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

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

Summary

Torrid beats Esprit on 7 of the 11 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 Esprit

Esprit Holdings Limited, an investment holding company, engages in retail and wholesale distribution, and licensing of fashion and non-apparel products. It operates through Europe; Asia; E-shop; and Corporate Services, Sourcing, Licensing and Others segments. The company offers apparel and accessories under the ESPRIT brand name through retail stores and e-commerce platforms. It is also involved in the sourcing, purchasing, distributing, and sale of merchandise; provision of financial and treasury services, as well as logistic services comprising customs dealing and quality control; design and image directions; and conceptualization and development of global uniform image businesses. Esprit Holdings Limited was founded in 1968 and is headquartered in North Point, Hong Kong.