Torrid (NYSE:CURV) & GAP (NYSE:GAP) Head to Head Analysis

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Torrid	$1.00 billion	0.16	-$7.03 million	($0.06)	-27.13
GAP	$15.37 billion	0.58	$816.00 million	$2.15	11.11

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

Institutional & Insider Ownership

81.8% of Torrid shares are held by institutional investors. Comparatively, 58.8% of GAP shares are held by institutional investors. 9.8% of Torrid shares are held by insiders. Comparatively, 31.0% of GAP shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Torrid	-0.70%	-1.69%	-1.66%
GAP	5.31%	22.98%	6.70%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Torrid and GAP, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Torrid	4	3	1	0	1.63
GAP	0	5	10	2	2.82

Torrid presently has a consensus target price of $1.44, suggesting a potential downside of 11.55%. GAP has a consensus target price of $30.62, suggesting a potential upside of 28.12%. Given GAP’s stronger consensus rating and higher probable upside, analysts clearly believe GAP is more favorable than Torrid.

Volatility & Risk

Torrid has a beta of 1.51, suggesting that its share price is 51% more volatile than the S&P 500. Comparatively, GAP has a beta of 2.29, suggesting that its share price is 129% more volatile than the S&P 500.

Summary

GAP beats Torrid on 14 of the 15 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 GAP

Gap, Inc. operates as a global apparel retail company, which offers clothing, apparel, accessories, and personal care products for men, women, and children. The firm operates through the following segments: Gap Global, Old Navy Global, Banana Republic Global, Athleta, and Other. The Gap Global segment includes apparel and accessories for men and women under the Gap brand, along with the GapKids, BabyGap, GapMaternity, GapBody, and GapFit collections. The Old Navy Global segment offers clothing and accessories for adults and children. The Banana Republic Global segment provides clothing, eyewear, jewelry, shoes, handbags, and fragrances. The Athleta segment offers fitness apparel for women. The company founded by Donald G. Fisher and Doris F. Fisher in July 1969 and is headquartered in San Francisco, CA.