WallStSmart

Rent the Runway Inc (RENT)vsSea Ltd (SE)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Sea Ltd generates 6855% more annual revenue ($22.94B vs $329.80M). SE leads profitability with a 6.9% profit margin vs 6.8%. RENT trades at a lower P/E of 2.5x. SE earns a higher WallStSmart Score of 70/100 (B-).

RENT

Avoid

34

out of 100

Grade: F

Growth: 5.3Profit: 2.5Value: 8.3Quality: 5.0
Piotroski: 4/9Altman Z: -2.25

SE

Strong Buy

70

out of 100

Grade: B-

Growth: 10.0Profit: 6.0Value: 7.3Quality: 5.5
Piotroski: 6/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

RENTUndervalued (+57.6%)

Margin of Safety

+57.6%

Fair Value

$13.62

Current Price

$4.66

$8.96 discount

UndervaluedFair: $13.62Overvalued
SEUndervalued (+53.2%)

Margin of Safety

+53.2%

Fair Value

$244.86

Current Price

$84.88

$159.98 discount

UndervaluedFair: $244.86Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

RENT3 strengths · Avg: 9.3/10
P/E RatioValuation
2.5x10/10

Attractively priced relative to earnings

Debt/EquityHealth
-5.7610/10

Conservative balance sheet, low leverage

Revenue GrowthGrowth
20.0%8/10

Revenue surging 20.0% year-over-year

SE4 strengths · Avg: 9.3/10
Revenue GrowthGrowth
38.4%10/10

Revenue surging 38.4% year-over-year

EPS GrowthGrowth
58.2%10/10

Earnings expanding 58.2% YoY

Market CapQuality
$51.99B9/10

Large-cap with strong market position

PEG RatioValuation
0.598/10

Growing faster than its price suggests

Areas to Watch

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

0.0% earnings growth

Market CapQuality
$156.33M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
6.8%3/10

6.8% margin — thin

Return on EquityProfitability
-775.0%2/10

ROE of -775.0% — below average capital efficiency

SE3 concerns · Avg: 3.0/10
P/E RatioValuation
33.7x4/10

Premium valuation, high expectations priced in

Profit MarginProfitability
6.9%3/10

6.9% margin — thin

Free Cash FlowQuality
$02/10

Negative free cash flow — burning cash

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 20.0% demonstrates continued momentum.

Bull Case : SE

The strongest argument for SE centers on Revenue Growth, EPS Growth, Market Cap. Revenue growth of 38.4% demonstrates continued momentum. PEG of 0.59 suggests the stock is reasonably priced for its growth.

Bear Case : RENT

The primary concerns for RENT are EPS Growth, Market Cap, Profit Margin.

Bear Case : SE

The primary concerns for SE are P/E Ratio, Profit Margin, Free Cash Flow.

Key Dynamics to Monitor

RENT profiles as a growth stock while SE is a hypergrowth play — different risk/reward profiles.

SE carries more volatility with a beta of 1.70 — expect wider price swings.

SE is growing revenue faster at 38.4% — sustainability is the question.

Monitor APPAREL RETAIL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

SE scores higher overall (70/100 vs 34/100) and 38.4% revenue growth. RENT offers better value entry with a 57.6% margin of safety. Both earn "Strong 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.

Sea Ltd

CONSUMER CYCLICAL · INTERNET RETAIL · USA

Sea Limited is engaged in the digital entertainment, e-commerce and digital financial services businesses in Southeast Asia, Latin America, the rest of Asia and internationally. The company is headquartered in Singapore.

Want to dig deeper into these stocks?