Reviewing Levi Strauss & Co. (NYSE:LEVI) and Torrid (NYSE:CURV)

Torrid (NYSE:CURV) and Levi Strauss & Co. (NYSE:LEVI) are both retail/wholesale companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.

Volatility & Risk

Torrid has a beta of 1.49, meaning that its share price is 49% more volatile than the S&P 500. Comparatively, Levi Strauss & Co. has a beta of 1.33, meaning that its share price is 33% more volatile than the S&P 500.

Profitability

This table compares Torrid and Levi Strauss & Co.’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%
Levi Strauss & Co.	9.48%	27.92%	8.95%

Insider & Institutional Ownership

81.8% of Torrid shares are owned by institutional investors. Comparatively, 69.1% of Levi Strauss & Co. shares are owned by institutional investors. 5.9% of Torrid shares are owned by insiders. Comparatively, 1.3% of Levi Strauss & Co. shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and target prices for Torrid and Levi Strauss & Co., as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Torrid	4	3	1	0	1.63
Levi Strauss & Co.	0	4	11	0	2.73

Torrid currently has a consensus price target of $1.44, suggesting a potential upside of 13.83%. Levi Strauss & Co. has a consensus price target of $26.46, suggesting a potential upside of 21.08%. Given Levi Strauss & Co.’s stronger consensus rating and higher possible upside, analysts clearly believe Levi Strauss & Co. is more favorable than Torrid.

Valuation and Earnings

This table compares Torrid and Levi Strauss & Co.”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	0.11	$16.32 million	($0.01)	-126.50
Levi Strauss & Co.	$6.36 billion	1.34	$210.60 million	$1.52	14.38

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

Summary

Levi Strauss & Co. beats Torrid on 11 of the 14 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 Levi Strauss & Co.

Levi Strauss & Co. engages in the design, marketing, and sale of apparel products. The company offers jeans, casual and dress pants, tops, shorts, skirts, jackets, footwear, and related accessories. It operates through the following geographical segments: Americas, Europe, and Asia. The company was founded by Levi Strauss in 1853 and is headquartered in San Francisco, CA.