Analyzing Talon International (OTCMKTS:TALN) & Revolve Group (NYSE:RVLV)

Revolve Group (NYSE:RVLV) and Talon International (OTCMKTS:TALN) are both small-cap consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, profitability, institutional ownership, earnings, risk and analyst recommendations.

Institutional & Insider Ownership

67.6% of Revolve Group shares are owned by institutional investors. 46.6% of Revolve Group shares are owned by insiders. Comparatively, 20.3% of Talon International shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk and Volatility

Revolve Group has a beta of 1.93, meaning that its share price is 93% more volatile than the S&P 500. Comparatively, Talon International has a beta of -0.7, meaning that its share price is 170% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Revolve Group	4.64%	11.26%	7.30%
Talon International	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent recommendations and price targets for Revolve Group and Talon International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Revolve Group	0	7	9	0	2.56
Talon International	0	0	0	0	0.00

Revolve Group currently has a consensus target price of $26.21, suggesting a potential upside of 7.13%. Given Revolve Group’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Revolve Group is more favorable than Talon International.

Valuation & Earnings

This table compares Revolve Group and Talon International”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Revolve Group	$1.13 billion	1.54	$49.56 million	$0.76	32.20
Talon International	$32.11 million	0.17	$220,000.00	N/A	N/A

Revolve Group has higher revenue and earnings than Talon International.

Summary

Revolve Group beats Talon International on 12 of the 12 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 Talon International

Talon International, Inc. manufactures and distributes apparel components and accessories to manufacturers of fashion apparel, specialty retailers, and mass merchandisers. The company offers a line of metal, coil, and plastic zippers under the Talon brand name; apparel trim components, including tags, labels, buttons, rivets, leather patches, woven labels, heat transfer seals, tapes, ribbons, printed marketing material, polybasic, packing cartons, and hangers; Flex-It films, adhesive films, overlay films, seam sealing tapes; metal fasteners; stretch waistbands, shirt collars, and inner pocketing panels under the Tekfit brand, as well as packaging and other items; and specialty stretch technology for interlinings. It also provides outsourced trim design, sourcing, and management services, as well as supplies custom branded trim components. The company sells its products through its own sales force in the United States, Hong Kong, China, India, Indonesia, Vietnam, and Bangladesh, as well as through sales representatives in Europe. The company was formerly known as Tag-It Pacific, Inc. and changed its name to Talon International, Inc. in July 2007. Talon International, Inc. was founded in 1980 and is headquartered in Woodland Hills, California.