WallStSmart

Rent the Runway Inc (RENT)vsUrban Outfitters Inc (URBN)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Urban Outfitters Inc generates 1860% more annual revenue ($6.17B vs $314.50M). URBN leads profitability with a 7.5% profit margin vs 3.4%. RENT trades at a lower P/E of 1.7x. URBN earns a higher WallStSmart Score of 62/100 (C+).

RENT

Avoid

30

out of 100

Grade: F

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

URBN

Buy

62

out of 100

Grade: C+

Growth: 4.7Profit: 6.0Value: 7.3Quality: 6.8
Piotroski: 5/9Altman Z: 3.41
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
URBNSignificantly Overvalued (-104.9%)

Margin of Safety

-104.9%

Fair Value

$34.41

Current Price

$61.47

$27.06 premium

UndervaluedFair: $34.41Overvalued

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

URBN3 strengths · Avg: 8.7/10
Altman Z-ScoreHealth
3.4110/10

Safe zone — low bankruptcy risk

P/E RatioValuation
12.2x8/10

Attractively priced relative to earnings

Price/BookValuation
2.0x8/10

Reasonable price relative to book value

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

URBN2 concerns · Avg: 2.5/10
Profit MarginProfitability
7.5%3/10

7.5% margin — thin

EPS GrowthGrowth
-17.4%2/10

Earnings declined 17.4%

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 : URBN

The strongest argument for URBN centers on Altman Z-Score, P/E Ratio, Price/Book. Revenue growth of 10.1% demonstrates continued momentum. PEG of 1.01 suggests the stock is reasonably priced for its growth.

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 : URBN

The primary concerns for URBN are Profit Margin, EPS Growth.

Key Dynamics to Monitor

RENT profiles as a growth stock while URBN 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.

URBN generates stronger free cash flow (217M), providing more financial flexibility.

Bottom Line

URBN scores higher overall (62/100 vs 30/100) and 10.1% 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.

Urban Outfitters Inc

CONSUMER CYCLICAL · APPAREL RETAIL · USA

Urban Outfitters, Inc. is engaged in the retail and wholesale of general consumer products. The company is headquartered in Philadelphia, Pennsylvania.

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