Critical Analysis: Torrid (CURV) versus Its Competitors

Torrid (NYSE:CURV) is one of 285 public companies in the “Specialty Retail” industry, but how does it compare to its competitors? We will compare Torrid to similar businesses based on the strength of its institutional ownership, risk, earnings, profitability, analyst recommendations, dividends and valuation.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Torrid and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Torrid	2	5	1	0	1.88
Torrid Competitors	3666	15568	21600	589	2.46

Torrid currently has a consensus price target of $1.81, indicating a potential downside of 30.69%. As a group, “Specialty Retail” companies have a potential upside of 5.51%. Given Torrid’s competitors stronger consensus rating and higher possible upside, analysts plainly believe Torrid has less favorable growth aspects than its competitors.

Profitability

This table compares Torrid and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Torrid	-0.94%	N/A	-4.49%
Torrid Competitors	-3.69%	-13.95%	3.18%

Valuation & Earnings

This table compares Torrid and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Torrid	$1.00 billion	-$7.03 million	-29.06
Torrid Competitors	$7.05 billion	$386.47 million	32.43

Torrid’s competitors have higher revenue and earnings than Torrid. Torrid is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Risk and Volatility

Torrid has a beta of 0.72, indicating that its share price is 28% less volatile than the S&P 500. Comparatively, Torrid’s competitors have a beta of 1.91, indicating that their average share price is 91% more volatile than the S&P 500.

Institutional and Insider Ownership

81.8% of Torrid shares are held by institutional investors. Comparatively, 51.6% of shares of all “Specialty Retail” companies are held by institutional investors. 6.5% of Torrid shares are held by company insiders. Comparatively, 20.5% of shares of all “Specialty Retail” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Torrid competitors beat Torrid on 10 of the 13 factors compared.

Torrid Company Profile

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.