HomesToLife (NASDAQ:HTLM – Get Free Report) and Rent the Runway (NASDAQ:RENT – Get Free Report) are both small-cap consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, earnings, institutional ownership, valuation, dividends and profitability.
Valuation & Earnings
This table compares HomesToLife and Rent the Runway”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| HomesToLife | $377.88 million | 0.07 | $16.55 million | $0.14 | 12.41 |
| Rent the Runway | $329.80 million | 0.18 | $22.60 million | $12.66 | 0.14 |
Rent the Runway has lower revenue, but higher earnings than HomesToLife. Rent the Runway is trading at a lower price-to-earnings ratio than HomesToLife, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent ratings and price targets for HomesToLife and Rent the Runway, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| HomesToLife | 1 | 0 | 0 | 0 | 1.00 |
| Rent the Runway | 1 | 0 | 0 | 0 | 1.00 |
Insider and Institutional Ownership
73.1% of Rent the Runway shares are owned by institutional investors. 0.4% of Rent the Runway shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Profitability
This table compares HomesToLife and Rent the Runway’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| HomesToLife | 3.25% | 45.31% | 9.79% |
| Rent the Runway | 11.80% | N/A | -21.89% |
Risk & Volatility
HomesToLife has a beta of -0.02, meaning that its share price is 102% less volatile than the S&P 500. Comparatively, Rent the Runway has a beta of 1.24, meaning that its share price is 24% more volatile than the S&P 500.
Summary
Rent the Runway beats HomesToLife on 7 of the 11 factors compared between the two stocks.
About HomesToLife
HomesToLife Ltd. engages in the retail of home furniture and sale of customized furniture solutions. Its products include leather and fabric upholstered furniture, case goods, and accessories. The company was founded by Yong Pin Phua and Yong Tat Phua in September 1989 and is headquartered in Singapore.
About Rent the Runway
Rent the Runway, Inc. operates shared designer closet in the United States. The company offers evening wear and accessories, ready-to-wear, workwear, denim, casual, maternity, outerwear, blouses, knitwear, loungewear, jewelry, handbags, activewear, and ski wear under subscription, rental, and resale offering. It also engages in the software development and support activities. Rent the Runway, Inc. was incorporated in 2009 and is headquartered in Brooklyn, New York.
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