Reviewing Torrid (NYSE:CURV) and Buckle (NYSE:BKE)

Torrid (NYSE:CURV) and Buckle (NYSE:BKE) are both retail/wholesale companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, earnings, institutional ownership, analyst recommendations, risk and dividends.

Insider & Institutional Ownership

81.8% of Torrid shares are held by institutional investors. Comparatively, 53.9% of Buckle shares are held by institutional investors. 5.9% of Torrid shares are held by company insiders. Comparatively, 39.0% of Buckle 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.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Torrid	$1.07 billion	0.19	$16.32 million	$0.04	47.13
Buckle	$1.25 billion	2.43	$195.47 million	$4.00	14.88

Buckle has higher revenue and earnings than Torrid. Buckle 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 Buckle’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Torrid	0.30%	-1.72%	0.68%
Buckle	16.12%	43.97%	20.70%

Analyst Recommendations

This is a breakdown of current ratings and target prices for Torrid and Buckle, as reported by MarketBeat.

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

Torrid currently has a consensus target price of $3.69, indicating a potential upside of 95.62%. Buckle has a consensus target price of $54.00, indicating a potential downside of 9.27%. Given Torrid’s higher probable upside, equities research analysts plainly believe Torrid is more favorable than Buckle.

Volatility and Risk

Torrid has a beta of 1.56, indicating that its stock price is 56% more volatile than the S&P 500. Comparatively, Buckle has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500.

Summary

Buckle beats Torrid 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 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.