Analyzing Revolve Group (NYSE:RVLV) and Teijin (OTCMKTS:TINLY)

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

Insider and Institutional Ownership

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

Risk & Volatility

Revolve Group has a beta of 1.79, indicating that its share price is 79% more volatile than the S&P 500. Comparatively, Teijin has a beta of 0.06, indicating that its share price is 94% less volatile than the S&P 500.

Profitability

This table compares Revolve Group and Teijin’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%
Teijin	N/A	N/A	N/A

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Revolve Group	0	7	8	1	2.63
Teijin	0	0	0	0	0.00

Revolve Group currently has a consensus target price of $27.62, indicating a potential upside of 6.36%. Given Revolve Group’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Revolve Group is more favorable than Teijin.

Valuation & Earnings

This table compares Revolve Group and Teijin”s gross 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	1.64	$49.56 million	$0.76	34.16
Teijin	$6.60 billion	0.30	$187.09 million	($2.05)	-5.02

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

Summary

Revolve Group beats Teijin on 13 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 Teijin

Teijin Limited engages in the fibers, films and sheets, composites, healthcare, and IT businesses worldwide. It offers aramid fibers and polyethylene materials; carbon fibers, composite materials, and oxidized PAN fibers; polycarbonate sheets and films; high-density polyethylene porous films and materials; and microporous films. The company also provides PC resins, polyphenylene sulfide resins, molded parts, and additives; lightweight glass and carbon fiber reinforced composites for automotive applications; and polytrimethylene telephthalate products, artificial leather materials, polyester nanofibers, and recycled polyester fibers. In addition, it offers pharmaceuticals for bone and joint, respiratory, cardiovascular and metabolic, and other diseases; home oxygen therapy, non-invasive positive pressure ventilation, rehabilitation, and sleep disordered breathing related devices, as well as sonic accelerated fracture healing system and community-based integrated care system; and orthopedic implantable devices, and functional food ingredients. Further, the company provides Recopic, a radio-frequency identification technology for inventory management. Additionally, it develops and implements engineering solutions for various issues, such as environmental pollution, energy supply stability, and aging-related workforce population decline. Teijin Limited was incorporated in 1918 and is headquartered in Tokyo, Japan.