Head-To-Head Analysis: Destination Maternity (OTCMKTS:DESTQ) vs. Torrid (NYSE:CURV)

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

Institutional & Insider Ownership

81.8% of Torrid shares are owned by institutional investors. 0.4% of Destination Maternity shares are owned by company insiders. Comparatively, 9.8% of Torrid shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Destination Maternity and Torrid”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Destination Maternity	N/A	N/A	N/A	N/A	N/A
Torrid	$1.10 billion	0.09	$16.32 million	($0.01)	-102.50

Torrid has higher revenue and earnings than Destination Maternity.

Profitability

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

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

Analyst Ratings

This is a breakdown of current ratings and price targets for Destination Maternity and Torrid, as reported by MarketBeat.com.

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

Torrid has a consensus target price of $1.44, suggesting a potential upside of 40.49%. Given Torrid’s stronger consensus rating and higher possible upside, analysts clearly believe Torrid is more favorable than Destination Maternity.

Summary

Torrid beats Destination Maternity on 6 of the 9 factors compared between the two stocks.

About Destination Maternity

Destination Maternity Corp. engages in the design, manufacture and sale of maternity apparel and related accessories. It operates stores under three brands: Motherhood Maternity, A Pea in the Pod, and Destination Maternity. The Motherhood Maternity brand serves maternity apparel business, which is used in special occasion, offering quality merchandise at affordable value. The A Pea in the Pod brand is a contemporary, fashion-forward assortment including a curated selection of exclusive designer labels at premium pricing, offering the mom2be fashionable maternity pieces that reflect her uncompromising sense of style in both casual and career apparel. The Destination Maternity brand relates to a selection of fashion offers all three brands, plus skincare, fitness, and nutritional products to pamper the pregnant woman. The company was founded in 1982 and is headquartered in Moorestown, NJ.

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.