Hennes & Mauritz (OTCMKTS:HNNMY) & Torrid (NYSE:CURV) Critical Survey

Hennes & Mauritz (OTCMKTS:HNNMY) and Torrid (NYSE:CURV) are both retail/wholesale companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, dividends, risk, valuation, profitability and analyst recommendations.

Insider and Institutional Ownership

0.0% of Hennes & Mauritz shares are held by institutional investors. Comparatively, 81.8% of Torrid shares are held by institutional investors. 5.9% of Torrid shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and target prices for Hennes & Mauritz and Torrid, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hennes & Mauritz	0	6	0	1	2.29
Torrid	4	3	1	0	1.63

Torrid has a consensus price target of $1.44, suggesting a potential upside of 45.45%. Given Torrid’s higher possible upside, analysts plainly believe Torrid is more favorable than Hennes & Mauritz.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hennes & Mauritz	$22.18 billion	1.26	$1.11 billion	$0.14	28.32
Torrid	$1.10 billion	0.09	$16.32 million	($0.01)	-99.00

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

Profitability

This table compares Hennes & Mauritz and Torrid’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hennes & Mauritz	4.80%	26.34%	6.32%
Torrid	-0.18%	-1.69%	-0.43%

Risk and Volatility

Hennes & Mauritz has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500. Comparatively, Torrid has a beta of 1.49, meaning that its share price is 49% more volatile than the S&P 500.

Summary

Hennes & Mauritz beats Torrid on 10 of the 15 factors compared between the two stocks.

About Hennes & Mauritz

H & M Hennes & Mauritz AB (publ) provides clothing, accessories, footwear, cosmetics, home textiles, and homeware for women, men, and children worldwide. It offers sportswear, shoes, bags, beauty products, activewear, jeans, and ready-to-wear; and interior products, including bed linens, dinnerware, textiles, furniture, and lighting. The company provides its products under the H&M, H&M HOME, H&M Move, H&M Beauty, COS, Weekday, Monki, & Other Stories, ARKET, Afound, and Singular Society brand names. In addition, it operates Sellpy, a broad digital platform for second-hand fashion and other products; and Creator Studio, a global platform for merchandise design and production, as well as provides solutions to extend the useful life of unwanted garments through reuse and recycling under Looper Textile name. The company offers its products through online and physical stores. H & M Hennes & Mauritz AB (publ) was incorporated in 1943 and is headquartered in Stockholm, Sweden.

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.