Financial Review: ASOS PLS (OTCMKTS:ASOMY) & Torrid (NYSE:CURV)

Torrid (NYSE:CURV) and ASOS PLS (OTCMKTS:ASOMY) are both small-cap retail/wholesale companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, profitability, institutional ownership, analyst recommendations, valuation, dividends and risk.

Risk and Volatility

Torrid has a beta of 1.51, suggesting that its stock price is 51% more volatile than the S&P 500. Comparatively, ASOS PLS has a beta of 2.22, suggesting that its stock price is 122% more volatile than the S&P 500.

Institutional & Insider Ownership

81.8% of Torrid shares are owned by institutional investors. 5.9% of Torrid shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Torrid	$1.10 billion	0.13	$16.32 million	$0.04	36.13
ASOS PLS	$3.66 billion	0.10	-$427.20 million	N/A	N/A

Torrid has higher earnings, but lower revenue than ASOS PLS.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Torrid	0.30%	-1.69%	0.70%
ASOS PLS	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of recent ratings and price targets for Torrid and ASOS PLS, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Torrid	3	2	1	0	1.67
ASOS PLS	1	1	0	1	2.33

Torrid currently has a consensus price target of $3.03, suggesting a potential upside of 109.34%. Given Torrid’s higher possible upside, equities analysts plainly believe Torrid is more favorable than ASOS PLS.

Summary

Torrid beats ASOS PLS on 8 of the 13 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 ASOS PLS

ASOS Plc operates as an online fashion retailer in the United Kingdom, the United States, Australia, France, Germany, Spain, Italy, Sweden, the Netherlands, Denmark, Poland, and internationally. It offers womenswear and menswear products. The company sells its products under the ASOS Design, ASOS Edition, ASOS Luxe, ASOS 4505, Collusion, Reclaimed Vintage, Topshop, Topman, Miss Selfridge, HIIT, AsYou, Dark Future, UNRVLLD/SPPLY, Crooked Tongues, Daysocial, Actual, and Weekend Collective brands, as well as through third-party brands. It is also involved in the employer of marketing staff and payment processing businesses, as well as acts as a vehicle for issue of convertible bonds. ASOS Plc was incorporated in 2000 and is headquartered in London, the United Kingdom.