Head to Head Review: lululemon athletica (NASDAQ:LULU) and Revolve Group (NYSE:RVLV)

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

Earnings & Valuation

This table compares lululemon athletica and Revolve Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
lululemon athletica	$10.59 billion	1.97	$1.81 billion	$14.71	11.94
Revolve Group	$1.13 billion	1.41	$49.56 million	$0.62	36.12

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

Risk and Volatility

lululemon athletica has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500. Comparatively, Revolve Group has a beta of 1.88, suggesting that its stock price is 88% more volatile than the S&P 500.

Institutional & Insider Ownership

85.2% of lululemon athletica shares are owned by institutional investors. Comparatively, 67.6% of Revolve Group shares are owned by institutional investors. 0.5% of lululemon athletica shares are owned by insiders. Comparatively, 43.8% of Revolve Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and price targets for lululemon athletica and Revolve Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
lululemon athletica	4	26	4	1	2.06
Revolve Group	1	6	10	0	2.53

lululemon athletica currently has a consensus price target of $233.33, indicating a potential upside of 32.88%. Revolve Group has a consensus price target of $27.40, indicating a potential upside of 22.35%. Given lululemon athletica’s higher possible upside, equities analysts plainly believe lululemon athletica is more favorable than Revolve Group.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
lululemon athletica	16.38%	42.05%	24.10%
Revolve Group	3.83%	10.17%	6.53%

Summary

lululemon athletica beats Revolve Group on 10 of the 15 factors compared between the two stocks.

About lululemon athletica

Lululemon Athletica Inc., together with its subsidiaries, designs, distributes, and retails athletic apparel, footwear, and accessories under the lululemon brand for women and men. It offers pants, shorts, tops, and jackets for healthy lifestyle, such as yoga, running, training, and other activities. It also provides fitness-inspired accessories. The company sells its products through a chain of company-operated stores; outlets; interactive workout platform; yoga and fitness studios, university campus retailers, and other partners; license and supply arrangements; and temporary locations, as well as through mobile apps and lululemon.com e-commerce website. It has operations in the United States, Canada, Mainland China, Australia, South Korea, Hong Kong, Japan, New Zealand, Taiwan, Singapore, Malaysia, Macau, Thailand, the Asia Pacific, the United Kingdom, Germany, France, Ireland, Spain, the Netherlands, Sweden, Norway, Switzerland, Europe, the Middle East, and Africa. Lululemon Athletica Inc. was founded in 1998 and is based in Vancouver, Canada.

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.