WallStSmart

Rent the Runway Inc (RENT)vsRoss Stores Inc (ROST)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Ross Stores Inc generates 6901% more annual revenue ($24.51B vs $350.10M). ROST leads profitability with a 10.8% profit margin vs 8.5%. RENT trades at a lower P/E of 0.5x. ROST earns a higher WallStSmart Score of 64/100 (C+).

RENT

Avoid

34

out of 100

Grade: F

Growth: 5.3Profit: 3.0Value: 6.7Quality: 5.0
Piotroski: 5/9Altman Z: -5.27

ROST

Buy

64

out of 100

Grade: C+

Growth: 7.3Profit: 7.5Value: 4.7Quality: 7.0
Piotroski: 5/9Altman Z: 3.11
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for RENT.

ROSTFair Value (-4.8%)

Margin of Safety

-4.8%

Fair Value

$183.73

Current Price

$226.26

$42.53 premium

UndervaluedFair: $183.73Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

RENT3 strengths · Avg: 9.3/10
P/E RatioValuation
0.5x10/10

Attractively priced relative to earnings

Debt/EquityHealth
-3.7010/10

Conservative balance sheet, low leverage

Revenue GrowthGrowth
29.2%8/10

Revenue surging 29.2% year-over-year

ROST4 strengths · Avg: 9.8/10
Return on EquityProfitability
39.4%10/10

Every $100 of equity generates 39 in profit

EPS GrowthGrowth
70.5%10/10

Earnings expanding 70.5% YoY

Altman Z-ScoreHealth
3.1110/10

Safe zone — low bankruptcy risk

Market CapQuality
$74.02B9/10

Large-cap with strong market position

Areas to Watch

RENT4 concerns · Avg: 2.8/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$127.80M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-775.0%2/10

ROE of -775.0% — below average capital efficiency

Free Cash FlowQuality
$-5.20M2/10

Negative free cash flow — burning cash

ROST3 concerns · Avg: 4.0/10
PEG RatioValuation
2.424/10

Expensive relative to growth rate

P/E RatioValuation
27.9x4/10

Moderate valuation

Price/BookValuation
10.7x4/10

Trading at 10.7x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : RENT

The strongest argument for RENT centers on P/E Ratio, Debt/Equity, Revenue Growth. Revenue growth of 29.2% demonstrates continued momentum.

Bull Case : ROST

The strongest argument for ROST centers on Return on Equity, EPS Growth, Altman Z-Score. Revenue growth of 13.3% demonstrates continued momentum.

Bear Case : RENT

The primary concerns for RENT are EPS Growth, Market Cap, Return on Equity.

Bear Case : ROST

The primary concerns for ROST are PEG Ratio, P/E Ratio, Price/Book.

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 1.18 — expect wider price swings.

RENT is growing revenue faster at 29.2% — sustainability is the question.

ROST generates stronger free cash flow (624M), providing more financial flexibility.

Bottom Line

ROST scores higher overall (64/100 vs 34/100) and 13.3% revenue growth. 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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