Reviewing Revolve Group (NYSE:RVLV) & Ralph Lauren (NYSE:RL)

Revolve Group (NYSE:RVLV) and Ralph Lauren (NYSE:RL) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, earnings, institutional ownership, analyst recommendations, risk, valuation and profitability.

Earnings and Valuation

This table compares Revolve Group and Ralph Lauren”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Revolve Group	$1.13 billion	1.24	$49.56 million	$0.62	31.63
Ralph Lauren	$7.08 billion	2.46	$742.90 million	$11.61	24.86

Ralph Lauren has higher revenue and earnings than Revolve Group. Ralph Lauren is trading at a lower price-to-earnings ratio than Revolve Group, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

67.6% of Revolve Group shares are owned by institutional investors. Comparatively, 67.9% of Ralph Lauren shares are owned by institutional investors. 46.6% of Revolve Group shares are owned by insiders. Comparatively, 38.3% of Ralph Lauren shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Revolve Group and Ralph Lauren, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Revolve Group	1	5	10	0	2.56
Ralph Lauren	1	2	14	1	2.83

Revolve Group currently has a consensus price target of $27.40, indicating a potential upside of 39.73%. Ralph Lauren has a consensus price target of $306.4118, indicating a potential upside of 6.18%. Given Revolve Group’s higher possible upside, equities research analysts clearly believe Revolve Group is more favorable than Ralph Lauren.

Profitability

This table compares Revolve Group and Ralph Lauren’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Revolve Group	3.83%	10.17%	6.53%
Ralph Lauren	10.91%	33.72%	11.86%

Risk & Volatility

Revolve Group has a beta of 1.98, meaning that its stock price is 98% more volatile than the S&P 500. Comparatively, Ralph Lauren has a beta of 1.53, meaning that its stock price is 53% more volatile than the S&P 500.

Summary

Ralph Lauren beats Revolve Group on 11 of the 15 factors compared between the two stocks.

About Revolve Group

Revolve Group, Inc. operates as an online fashion retailer for millennial and generation z consumers in the United States and internationally. The company operates in two segments, REVOLVE and FWRD. It operates a platform that connects consumers and global fashion influencers, as well as emerging, established, and owned brands. The company offers apparel, footwear, accessories, beauty, and home products from emerging, established, and owned brands, as well as luxury brands through its websites and mobile apps. The company was formerly known as Advance Holdings, LLC and changed its name to Revolve Group, Inc. in October 2018. Revolve Group, Inc. was founded in 2003 and is headquartered in Cerritos, California.

About Ralph Lauren

Ralph Lauren Corporation designs, markets, and distributes lifestyle products in North America, Europe, Asia, and internationally. The company offers apparel, including a range of men’s, women’s, and children’s clothing; footwear and accessories, which comprise casual shoes, dress shoes, boots, sneakers, sandals, eyewear, watches, fashion and fine jewelry, scarves, hats, gloves, and umbrellas, as well as leather goods, such as handbags, luggage, small leather goods, and belts; home products consisting of bed and bath lines, furniture, fabric and wallcoverings, floor coverings, lighting, tabletop, kitchen linens, floor coverings, dining, decorative accessories, and giftware; and fragrances. It sells apparel and accessories under the Ralph Lauren Collection, Ralph Lauren Purple Label, Polo Ralph Lauren, Double RL, Lauren Ralph Lauren, Polo Golf Ralph Lauren, Ralph Lauren Golf, RLX Ralph Lauren, Polo Ralph Lauren Children, and Chaps brands; women’s fragrances under the Ralph Lauren Collection, Woman by Ralph Lauren, Romance Collection, and Ralph Collection brand names; and men’s fragrances under the Ralph’s Club, Purple Label, Polo Blue, Polo Red, Polo Green, Polo Black, Polo 67, Safari, Polo Sport, and Big Pony Men’s brand names. The company’s restaurant collection includes The Polo Bar in New York City; RL Restaurant in Chicago; Ralph’s in Paris; The Bar at Ralph Lauren located in Milan; Ralph’s Bar located in Chengdu, China; and Ralph’s Coffee concept. It sells its products to department stores, specialty stores, and golf and pro shops, as well as directly to consumers through its retail stores, concession-based shop-within-shops, and its digital commerce sites. The company directly operates retail stores and concession-based shop-within-shops; and operates Ralph Lauren stores and stores and shops through licensing partners. Ralph Lauren Corporation was founded in 1967 and is headquartered in New York, New York.