Roots (OTCMKTS:RROTF) & Torrid (NYSE:CURV) Financial Analysis

Torrid (NYSE:CURV) and Roots (OTCMKTS:RROTF) are both retail/wholesale companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, dividends, risk, profitability and institutional ownership.

Valuation and Earnings

This table compares Torrid and Roots”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Torrid	$1.15 billion	0.33	$11.62 million	$0.13	27.69
Roots	N/A	N/A	N/A	N/A	N/A

Torrid has higher revenue and earnings than Roots.

Profitability

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

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

Insider & Institutional Ownership

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 hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations for Torrid and Roots, as reported by MarketBeat.com.

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

Torrid currently has a consensus price target of $6.13, suggesting a potential upside of 70.14%. Given Torrid’s higher probable upside, equities research analysts plainly believe Torrid is more favorable than Roots.

Summary

Torrid beats Roots on 7 of the 8 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 Roots

Roots Corporation, together with its subsidiaries, designs, markets, and sells apparel, leather goods, footwear, and accessories under the Roots brand in Canada and internationally. The company operates through two segments, Direct-To-Consumer, and Partners and Other. The Direct-to-Consumer segment sells products through the company's corporate retail stores and ecommerce. The Partners and Other segment involved in the wholesale of Roots branded products to the company's international operating partners, licensees, and wholesale customers. Roots Corporation was founded in 1973 and is headquartered in Toronto, Canada.