ATRenew (NYSE:RERE – Get Rating) and Rent the Runway (NASDAQ:RENT – Get Rating) are both small-cap business services companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, risk, earnings, dividends, analyst recommendations, institutional ownership and valuation.
This table compares ATRenew and Rent the Runway’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Rent the Runway||-76.30%||-293.74%||-37.01%|
Valuation & Earnings
This table compares ATRenew 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|
|ATRenew||$1.22 billion||0.54||-$128.13 million||N/A||N/A|
|Rent the Runway||$203.30 million||0.76||-$211.80 million||($8.54)||-0.28|
Institutional & Insider Ownership
9.5% of ATRenew shares are held by institutional investors. Comparatively, 78.9% of Rent the Runway shares are held by institutional investors. 10.7% of ATRenew shares are held by company insiders. Comparatively, 10.7% of Rent the Runway shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This is a breakdown of recent ratings and target prices for ATRenew and Rent the Runway, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Rent the Runway||0||2||9||0||2.82|
Rent the Runway has a consensus price target of $8.91, suggesting a potential upside of 268.14%. Given Rent the Runway’s higher possible upside, analysts plainly believe Rent the Runway is more favorable than ATRenew.
ATRenew beats Rent the Runway on 5 of the 9 factors compared between the two stocks.
ATRenew Inc., through its subsidiaries, operates pre-owned consumer electronics transactions and services platform in the People's Republic of China. It primarily sells mobile phones, laptops, tablets, drones, digital cameras, household products, and bags through its online platforms and offline stores, as well as provides services to third-party merchants to sell the products through its platforms. As of December 31, 2021, it operated 1,287 AHS stores and 21 Paipai stores in 214 cities. The company was formerly known as AiHuiShou International Co. Ltd. and changed its name to ATRenew Inc. November 2021. The company was incorporated in 2011 and is headquartered in Shanghai, the People's Republic of China.
About Rent the Runway
Rent the Runway, Inc. rents designer wear for women through its stores and online retail. The company offers ready-to-wear, workwear, denim, casual, maternity, outerwear, blouses, knitwear, loungewear, jewelry, handbags, activewear, ski wear, home goods, evening wear, and kids wear, as well as accessories. It also engages in the software development and support activities. The company was incorporated in 2009 and is headquartered in Brooklyn, New York.
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