Rent the Runway (NASDAQ:RENT – Get Free Report) and HomesToLife (NASDAQ:HTLM – Get Free Report) are both small-cap consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, risk, institutional ownership, valuation, dividends, earnings and profitability.
Analyst Recommendations
This is a summary of recent ratings and target prices for Rent the Runway and HomesToLife, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Rent the Runway | 1 | 0 | 0 | 0 | 1.00 |
| HomesToLife | 1 | 0 | 0 | 0 | 1.00 |
Insider and Institutional Ownership
73.1% of Rent the Runway shares are owned by institutional investors. 0.4% of Rent the Runway shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Rent the Runway | 11.80% | N/A | -21.89% |
| HomesToLife | 3.25% | 45.31% | 9.79% |
Risk and Volatility
Rent the Runway has a beta of 1.24, suggesting that its stock price is 24% more volatile than the S&P 500. Comparatively, HomesToLife has a beta of -0.02, suggesting that its stock price is 102% less volatile than the S&P 500.
Valuation and Earnings
This table compares Rent the Runway and HomesToLife”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Rent the Runway | $329.80 million | 0.18 | $22.60 million | $12.66 | 0.14 |
| HomesToLife | $377.88 million | 0.07 | $16.55 million | $0.14 | 12.50 |
Rent the Runway has higher earnings, but lower revenue than HomesToLife. Rent the Runway is trading at a lower price-to-earnings ratio than HomesToLife, indicating that it is currently the more affordable of the two stocks.
Summary
Rent the Runway beats HomesToLife on 7 of the 11 factors compared between the two stocks.
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.
About HomesToLife
HomesToLife Ltd. engages in the retail of home furniture and sale of customized furniture solutions. Its products include leather and fabric upholstered furniture, case goods, and accessories. The company was founded by Yong Pin Phua and Yong Tat Phua in September 1989 and is headquartered in Singapore.
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