Head to Head Comparison: Revolve Group (NYSE:RVLV) vs. Hanesbrands (NYSE:HBI)

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

Volatility & Risk

Revolve Group has a beta of 1.98, indicating that its stock price is 98% more volatile than the S&P 500. Comparatively, Hanesbrands has a beta of 1.4, indicating that its stock price is 40% more volatile than the S&P 500.

Earnings & Valuation

This table compares Revolve Group and Hanesbrands”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Revolve Group	$1.13 billion	1.42	$49.56 million	$0.62	36.30
Hanesbrands	$3.51 billion	0.64	-$320.43 million	$0.24	26.52

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

Analyst Ratings

This is a summary of recent recommendations for Revolve Group and Hanesbrands, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Revolve Group	1	5	10	0	2.56
Hanesbrands	0	3	1	0	2.25

Revolve Group currently has a consensus price target of $27.40, indicating a potential upside of 21.76%. Hanesbrands has a consensus price target of $6.50, indicating a potential upside of 2.14%. Given Revolve Group’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Revolve Group is more favorable than Hanesbrands.

Institutional and Insider Ownership

67.6% of Revolve Group shares are owned by institutional investors. Comparatively, 80.3% of Hanesbrands shares are owned by institutional investors. 46.6% of Revolve Group shares are owned by insiders. Comparatively, 0.7% of Hanesbrands shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Revolve Group and Hanesbrands’ 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%
Hanesbrands	2.49%	226.31%	5.19%

Summary

Revolve Group beats Hanesbrands on 11 of the 14 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 Hanesbrands

Hanesbrands Inc., a consumer goods company, designs, manufactures, sources, and sells a range of range of innerwear apparels for men, women, and children in the Americas, Europe, the Asia pacific, and internationally. The company operates through three segments: Innerwear, Activewear, and International. It sells men’s underwear, women’s panties, children’s underwear, and socks, as well as intimate apparel comprising bras and shapewear; home goods; activewear apparel comprising T-shirts, fleece, performance apparel, sport shirts, performance T-shirts and shorts, sports bras, teamwear, and thermals; and licensed logo apparel in collegiate bookstores and mass retail channels. The company licenses its Champion name for footwear and sports accessories. It offers its products under the Hanes, Champion, Maidenform, JMS/Just My Size, Bali, Polo Ralph Lauren, Playtex, Alternative, Gear for Sports, Comfortwash, Hanes Beefy-T, Bonds, Sheridan, Bras N Things, Wonderbra, Berlei, Zorba, Sol y Oro, Maidenform, Rinbros, Bellinda, and RITMO brand names through retailers, wholesalers, and third-party embellishers. Hanesbrands Inc. was founded in 1901 and is headquartered in Winston-Salem, North Carolina.