Rent the Runway (NASDAQ:RENT – Get Rating) and 1-800-FLOWERS.COM (NASDAQ:FLWS – Get Rating) are both small-cap retail/wholesale companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, profitability, earnings, analyst recommendations, institutional ownership and dividends.
Institutional and Insider Ownership
69.9% of Rent the Runway shares are held by institutional investors. Comparatively, 37.6% of 1-800-FLOWERS.COM shares are held by institutional investors. 10.7% of Rent the Runway shares are held by company insiders. Comparatively, 49.8% of 1-800-FLOWERS.COM shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Analyst Ratings
This is a breakdown of current recommendations for Rent the Runway and 1-800-FLOWERS.COM, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Rent the Runway | 0 | 4 | 7 | 0 | 2.64 |
| 1-800-FLOWERS.COM | 0 | 1 | 2 | 0 | 2.67 |
Volatility & Risk
Rent the Runway has a beta of 0.68, indicating that its share price is 32% less volatile than the S&P 500. Comparatively, 1-800-FLOWERS.COM has a beta of 1.67, indicating that its share price is 67% more volatile than the S&P 500.
Valuation & Earnings
This table compares Rent the Runway and 1-800-FLOWERS.COM’s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Rent the Runway | $296.40 million | 0.57 | -$138.70 million | ($2.16) | -1.17 |
| 1-800-FLOWERS.COM | $2.21 billion | 0.28 | $29.61 million | ($0.69) | -13.67 |
1-800-FLOWERS.COM has higher revenue and earnings than Rent the Runway. 1-800-FLOWERS.COM is trading at a lower price-to-earnings ratio than Rent the Runway, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Rent the Runway and 1-800-FLOWERS.COM’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Rent the Runway | -46.79% | -649.61% | -35.01% |
| 1-800-FLOWERS.COM | -2.11% | 1.86% | 0.84% |
Summary
1-800-FLOWERS.COM beats Rent the Runway on 9 of the 14 factors compared between the two stocks.
About Rent the Runway
Rent the Runway, Inc. rents designer wear for women through its stores and online retail. The company offers ready-to-wear, workwear, denim, casual, maternity, outerwear, blouses, knitwear, loungewear, jewelry, handbags, activewear, ski wear, home goods, evening wear, and kids wear, as well as accessories. It also engages in the software development and support activities. The company was incorporated in 2009 and is headquartered in Brooklyn, New York.
About 1-800-FLOWERS.COM
1-800-FLOWERS.COM, engages in the provision of gifts designing. It operates through the following business segments: Consumer Floral and Gifts, Gourmet Floral and Gifts, and BloomNet. The Consumer Floral and Gifts segment operates 1-800-Flowers.com, PersonalizationMall, FruitBouquets.com, Flowerama, and Alice’s Table. The Gourmet Floral and Gifts segment manages Harry & David, Wolferman’s Bakery, Vital Choice, Moose Munch, Stock Yards, Cheryl’s, Mrs. Beasley’s, The Popcorn Factory, DesignPac, 1-800-Baskets.com, Simply Chocolate, and Shari’s Berries. The BloomNet segment consists of BloomNet and Napco. The company was founded by James F. McCann in 1976 and is headquartered in Jericho, NY.
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