Rent the Runway Inc (RENT)vsRoss Stores Inc (ROST)
RENT
Rent the Runway Inc
$4.81
+2.34%
CONSUMER CYCLICAL · Cap: $161.02M
ROST
Ross Stores Inc
$216.03
+0.11%
CONSUMER CYCLICAL · Cap: $70.18B
Smart Verdict
WallStSmart Research — data-driven comparison
Ross Stores Inc generates 7134% more annual revenue ($22.75B vs $314.50M). ROST leads profitability with a 9.4% profit margin vs 3.4%. RENT trades at a lower P/E of 1.7x. ROST earns a higher WallStSmart Score of 56/100 (C).
RENT
Avoid30
out of 100
Grade: F
ROST
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+70.5%
Fair Value
$19.58
Current Price
$4.81
$14.77 discount
Margin of Safety
-15.8%
Fair Value
$166.32
Current Price
$216.03
$49.71 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Conservative balance sheet, low leverage
15.4% revenue growth
Every $100 of equity generates 37 in profit
Safe zone — low bankruptcy risk
Large-cap with strong market position
Areas to Watch
0.0% earnings growth
Smaller company, higher risk/reward
3.4% margin — thin
ROE of -7.8% — below average capital efficiency
Premium valuation, high expectations priced in
Trading at 11.2x book value
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : RENT
The strongest argument for RENT centers on P/E Ratio, Debt/Equity, Revenue Growth. Revenue growth of 15.4% demonstrates continued momentum.
Bull Case : ROST
The strongest argument for ROST centers on Return on Equity, Altman Z-Score, Market Cap. Revenue growth of 12.2% demonstrates continued momentum.
Bear Case : RENT
The primary concerns for RENT are EPS Growth, Market Cap, Profit Margin. Thin 3.4% margins leave little buffer for downturns.
Bear Case : ROST
The primary concerns for ROST are P/E Ratio, Price/Book, PEG Ratio.
Key Dynamics to Monitor
RENT profiles as a growth stock while ROST is a value play — different risk/reward profiles.
RENT carries more volatility with a beta of 1.29 — expect wider price swings.
RENT is growing revenue faster at 15.4% — sustainability is the question.
ROST generates stronger free cash flow (921M), providing more financial flexibility.
Bottom Line
ROST scores higher overall (56/100 vs 30/100) and 12.2% revenue growth. RENT offers better value entry with a 70.5% margin of safety. Both earn "Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Rent the Runway Inc
CONSUMER CYCLICAL · APPAREL RETAIL · USA
Rent the Runway, Inc. rents women's designer dresses, clothing and accessories through its stores and online platform.
Ross Stores Inc
CONSUMER CYCLICAL · APPAREL RETAIL · USA
Ross Stores, Inc., operating under the brand name Ross Dress for Less, is an American chain of discount department stores headquartered in Dublin, California.
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