Head-To-Head Contrast: NEXT (OTCMKTS:NXGPF) and Torrid (NYSE:CURV)

NEXT (OTCMKTS:NXGPF) and Torrid (NYSE:CURV) are both consumer cyclical companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, institutional ownership, risk, valuation, dividends, earnings and analyst recommendations.

Institutional & Insider Ownership

47.2% of NEXT shares are owned by institutional investors. Comparatively, 81.8% of Torrid shares are owned by institutional investors. 9.8% of Torrid shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares NEXT and Torrid”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NEXT	N/A	N/A	N/A	$3.87	29.10
Torrid	$1.13 billion	0.37	$11.62 million	$0.11	36.27

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

Analyst Recommendations

This is a summary of current recommendations and price targets for NEXT and Torrid, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NEXT	0	2	0	0	2.00
Torrid	1	2	2	0	2.20

Torrid has a consensus price target of $6.13, indicating a potential upside of 53.51%. Given Torrid’s stronger consensus rating and higher probable upside, analysts clearly believe Torrid is more favorable than NEXT.

Profitability

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

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

Summary

Torrid beats NEXT on 9 of the 11 factors compared between the two stocks.

About NEXT

NEXT plc engages in the retail of clothing, beauty, footwear, and home products in the United Kingdom, rest of Europe, the Middle East, Asia, and internationally. The company operates through NEXT Retail; NEXT Online; NEXT Finance; Total Platform; Property Management; and Franchise, Sourcing, and other segments. It offers consumer credit; NEXT branded products; and women's, men's, children's, clothing, homeware, and beauty products under the LABEL brand, as well as other third-party brands. The company also provides property management services, including holding and lease of properties; operates call centers; and websites, marketing, warehousing, and distribution networks to third-party brands. It operates through retail stores, online retail platforms, and franchise stores. The company was formerly known as J Hepworth & Son and changed its name to NEXT plc in 1986. NEXT plc was founded in 1864 and is headquartered in Enderby, the United Kingdom.

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.