Torrid (NYSE:CURV) vs. NEXT (OTCMKTS:NXGPF) Financial Comparison

Torrid (NYSE:CURV) and NEXT (OTCMKTS:NXGPF) are both consumer cyclical companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, institutional ownership, profitability, earnings and risk.

Institutional and Insider Ownership

81.8% of Torrid shares are owned by institutional investors. Comparatively, 47.2% of NEXT shares are owned by institutional investors. 9.8% of Torrid shares are owned by 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.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Torrid and NEXT, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Torrid	1	2	2	0	2.20
NEXT	0	2	0	0	2.00

Torrid presently has a consensus price target of $6.44, suggesting a potential upside of 62.56%. Given Torrid’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Torrid is more favorable than NEXT.

Earnings & Valuation

This table compares Torrid and NEXT”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Torrid	$1.13 billion	0.36	$11.62 million	$0.11	36.00
NEXT	N/A	N/A	N/A	$3.87	29.10

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Torrid	1.21%	-6.77%	2.80%
NEXT	N/A	N/A	N/A

Summary

Torrid beats NEXT on 9 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 NEXT

NEXT plc engages in the retail of clothing, beauty, footwear, and home products in the United Kingdom, rest of Europe, the Middle East, Asia, and internationally. The company operates through NEXT Retail; NEXT Online; NEXT Finance; Total Platform; Property Management; and Franchise, Sourcing, and other segments. It offers consumer credit; NEXT branded products; and women's, men's, children's, clothing, homeware, and beauty products under the LABEL brand, as well as other third-party brands. The company also provides property management services, including holding and lease of properties; operates call centers; and websites, marketing, warehousing, and distribution networks to third-party brands. It operates through retail stores, online retail platforms, and franchise stores. The company was formerly known as J Hepworth & Son and changed its name to NEXT plc in 1986. NEXT plc was founded in 1864 and is headquartered in Enderby, the United Kingdom.