SFIX vs RENT

For growth investors, Rent the Runway, Inc.

(RENT) is the stronger pick with 2. 7% revenue growth year-over-year, versus -5. 3% for Stitch Fix, Inc. (SFIX). Analysts rate Stitch Fix, Inc. (SFIX) a "Hold" — based on 33 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

Over the past 5 years, Stitch Fix, Inc.

(SFIX) delivered a total return of -90. 7%, compared to -98. 8% for Rent the Runway, Inc. (RENT). Over 10 years, the gap is even starker: SFIX returned -75. 9% versus RENT's -98. 8%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Stitch Fix, Inc.

(SFIX) is the lower-risk stock at 2. 38β versus Rent the Runway, Inc. 's 2. 68β — meaning RENT is approximately 13% more volatile than SFIX relative to the S&P 500.

By revenue growth (latest reported year), Rent the Runway, Inc.

(RENT) is pulling ahead at 2. 7% versus -5. 3% for Stitch Fix, Inc. (SFIX). On earnings-per-share growth, the picture is similar: Stitch Fix, Inc. grew EPS 79. 4% year-over-year, compared to 44. 1% for Rent the Runway, Inc.. Over a 3-year CAGR, RENT leads at 14. 6% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Stitch Fix, Inc.

(SFIX) is the more profitable company, earning -2. 3% net margin versus -22. 8% for Rent the Runway, Inc. — meaning it keeps -2. 3% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: SFIX leads at -3. 5% versus -15. 5% for RENT. At the gross margin level — before operating expenses — RENT leads at 73. 0%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

None of the stocks in this comparison currently pay a material dividend.

All are effectively zero-yield and should be held for capital appreciation rather than income.

For long-horizon retirement investors, Stitch Fix, Inc.

(SFIX) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding. Rent the Runway, Inc. (RENT) carries a higher beta of 2. 68 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (SFIX: -75. 9%, RENT: -98. 8%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Consumer Cyclical sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.