Analyzing Fast Retailing (OTCMKTS:FRCOY) & Torrid (NYSE:CURV)

Torrid (NYSE:CURV) and Fast Retailing (OTCMKTS:FRCOY) are both consumer cyclical companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Profitability

This table compares Torrid and Fast Retailing’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Torrid	1.21%	-6.77%	2.80%
Fast Retailing	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Torrid and Fast Retailing, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Torrid	1	2	2	0	2.20
Fast Retailing	0	0	0	0	N/A

Torrid presently has a consensus target price of $6.44, suggesting a potential upside of 81.85%. Given Torrid’s higher possible upside, research analysts clearly believe Torrid is more favorable than Fast Retailing.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Torrid	$1.13 billion	0.33	$11.62 million	$0.11	32.18
Fast Retailing	N/A	N/A	N/A	$99.47	0.37

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

Institutional and Insider Ownership

81.8% of Torrid shares are owned by institutional investors. Comparatively, 0.0% of Fast Retailing shares are owned by institutional investors. 9.8% of Torrid shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Torrid beats Fast Retailing on 8 of the 10 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 Fast Retailing

Fast Retailing Co., Ltd., through its subsidiaries, operates as an apparel designer and retailer in Japan and internationally. The company operates through UNIQLO Japan, UNIQLO International, GU, and Global Brands segments. It manufactures and retails clothing for men, women, children, and babies, as well as offers shoes and other goods and items. The company operates stores and franchises under the UNIQLO, GU, PLST, Theory, COMPTOIR DES COTONNIERS, J Brand, and PRINCESSE TAM.TAM brand names. It also sells its products through online; and provides real estate leasing services. The company was formerly known as Ogori Shoji Co., Ltd. and changed its name to Fast Retailing Co., Ltd. in September 1991. Fast Retailing Co., Ltd. was founded in 1949 and is headquartered in Yamaguchi, Japan.