Buckle (NYSE:BKE – Get Free Report) and Rent the Runway (NASDAQ:RENT – Get Free Report) are both retail/wholesale companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, risk, profitability, dividends and valuation.
Analyst Recommendations
This is a breakdown of recent ratings for Buckle and Rent the Runway, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Buckle | 0 | 2 | 0 | 0 | 2.00 |
| Rent the Runway | 1 | 0 | 0 | 0 | 1.00 |
Buckle presently has a consensus target price of $47.00, indicating a potential upside of 10.62%. Given Buckle’s stronger consensus rating and higher possible upside, analysts clearly believe Buckle is more favorable than Rent the Runway.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Buckle | $1.31 billion | 1.67 | $209.74 million | $4.36 | 9.74 |
| Rent the Runway | $329.80 million | 0.34 | $22.60 million | $6.49 | 0.52 |
Buckle has higher revenue and earnings than Rent the Runway. Rent the Runway is trading at a lower price-to-earnings ratio than Buckle, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Buckle has a beta of 1.08, meaning that its share price is 8% more volatile than the S&P 500. Comparatively, Rent the Runway has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500.
Insider & Institutional Ownership
53.9% of Buckle shares are owned by institutional investors. Comparatively, 73.1% of Rent the Runway shares are owned by institutional investors. 39.0% of Buckle shares are owned by company insiders. Comparatively, 0.4% of Rent the Runway shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Profitability
This table compares Buckle and Rent the Runway’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Buckle | 16.85% | 47.35% | 21.36% |
| Rent the Runway | 8.51% | N/A | -30.10% |
Summary
Buckle beats Rent the Runway on 10 of the 13 factors compared between the two stocks.
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.
About Rent the Runway
Rent the Runway, Inc. operates shared designer closet in the United States. The company offers evening wear and accessories, ready-to-wear, workwear, denim, casual, maternity, outerwear, blouses, knitwear, loungewear, jewelry, handbags, activewear, and ski wear under subscription, rental, and resale offering. It also engages in the software development and support activities. Rent the Runway, Inc. was incorporated in 2009 and is headquartered in Brooklyn, New York.
Receive News & Ratings for Buckle Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Buckle and related companies with MarketBeat.com's FREE daily email newsletter.
