WallStSmart

Rent the Runway Inc (RENT)vsThe TJX Companies Inc (TJX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

The TJX Companies Inc generates 19096% more annual revenue ($60.37B vs $314.50M). TJX leads profitability with a 9.1% profit margin vs 3.4%. RENT trades at a lower P/E of 1.7x. TJX earns a higher WallStSmart Score of 56/100 (C).

RENT

Avoid

30

out of 100

Grade: F

Growth: 6.7Profit: 2.5Value: 8.3Quality: 5.0
Piotroski: 4/9Altman Z: -2.67

TJX

Buy

56

out of 100

Grade: C

Growth: 6.7Profit: 7.5Value: 7.3Quality: 6.3
Piotroski: 5/9Altman Z: 3.30
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

RENTUndervalued (+70.5%)

Margin of Safety

+70.5%

Fair Value

$19.58

Current Price

$4.81

$14.77 discount

UndervaluedFair: $19.58Overvalued
TJXUndervalued (+30.8%)

Margin of Safety

+30.8%

Fair Value

$227.92

Current Price

$159.74

$68.18 discount

UndervaluedFair: $227.92Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

RENT3 strengths · Avg: 9.3/10
P/E RatioValuation
1.7x10/10

Attractively priced relative to earnings

Debt/EquityHealth
-5.7610/10

Conservative balance sheet, low leverage

Revenue GrowthGrowth
15.4%8/10

15.4% revenue growth

TJX5 strengths · Avg: 9.0/10
Return on EquityProfitability
59.1%10/10

Every $100 of equity generates 59 in profit

Altman Z-ScoreHealth
3.3010/10

Safe zone — low bankruptcy risk

Market CapQuality
$177.78B9/10

Large-cap with strong market position

EPS GrowthGrowth
28.3%8/10

Earnings expanding 28.3% YoY

Free Cash FlowQuality
$2.63B8/10

Generating 2.6B in free cash flow

Areas to Watch

RENT4 concerns · Avg: 3.0/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$161.02M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
3.4%3/10

3.4% margin — thin

Return on EquityProfitability
-7.8%2/10

ROE of -7.8% — below average capital efficiency

TJX3 concerns · Avg: 3.3/10
P/E RatioValuation
32.8x4/10

Premium valuation, high expectations priced in

Price/BookValuation
17.6x4/10

Trading at 17.6x book value

PEG RatioValuation
3.242/10

Expensive relative to growth rate

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 15.4% demonstrates continued momentum.

Bull Case : TJX

The strongest argument for TJX centers on Return on Equity, Altman Z-Score, Market Cap.

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 : TJX

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

Key Dynamics to Monitor

RENT profiles as a growth stock while TJX 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.

TJX generates stronger free cash flow (2.6B), providing more financial flexibility.

Bottom Line

TJX scores higher overall (56/100 vs 30/100). 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.

The TJX Companies Inc

CONSUMER CYCLICAL · APPAREL RETAIL · USA

The TJX Companies, Inc. (abbreviated TJX) is an American multinational off-price department store corporation, headquartered in Framingham, Massachusetts.

Want to dig deeper into these stocks?