RideNow Group (NASDAQ:RDNW – Get Free Report) and PetMed Express (NASDAQ:PETS – Get Free Report) are both small-cap retail/wholesale companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, institutional ownership, profitability and earnings.
Insider and Institutional Ownership
66.1% of RideNow Group shares are owned by institutional investors. Comparatively, 73.3% of PetMed Express shares are owned by institutional investors. 54.7% of RideNow Group shares are owned by insiders. Comparatively, 2.0% of PetMed Express shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for RideNow Group and PetMed Express, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| RideNow Group | 1 | 2 | 1 | 0 | 2.00 |
| PetMed Express | 2 | 1 | 0 | 0 | 1.33 |
Profitability
This table compares RideNow Group and PetMed Express’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| RideNow Group | -9.35% | -223.85% | -4.01% |
| PetMed Express | -35.51% | -70.81% | -33.67% |
Earnings and Valuation
This table compares RideNow Group and PetMed Express”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| RideNow Group | $1.21 billion | 0.20 | -$78.60 million | ($2.80) | -2.30 |
| PetMed Express | $226.97 million | 0.27 | -$6.27 million | ($3.12) | -0.92 |
PetMed Express has lower revenue, but higher earnings than RideNow Group. RideNow Group is trading at a lower price-to-earnings ratio than PetMed Express, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
RideNow Group has a beta of 1.31, suggesting that its stock price is 31% more volatile than the S&P 500. Comparatively, PetMed Express has a beta of 0.7, suggesting that its stock price is 30% less volatile than the S&P 500.
Summary
RideNow Group beats PetMed Express on 8 of the 14 factors compared between the two stocks.
About RideNow Group
RumbleOn, Inc. primarily operates as a powersports retailer in the United States. It operates in two segments, Powersports and Vehicle Transportation Services. The Powersports segment provides new and pre-owned motorcycles, all-terrain vehicles, utility terrain or side-by-side vehicles, personal watercraft, snowmobiles, and other powersports products. It also offers parts, apparel, accessories, finance and insurance products and services, and aftermarket products, as well as repair and maintenance services. The Vehicle Transportation Services segment provides asset-light transportation brokerage services facilitating automobile transportation. The company was formerly known as Smart Server, Inc. and changed its name to RumbleOn, Inc. in February 2017. The company was incorporated in 2013 and is based in Irving, Texas.
About PetMed Express
PetMed Express, Inc., together with its subsidiaries, operates as a pet pharmacy in the United States. The company markets prescription and non-prescription pet medications, health products, and other supplies for dogs, cats, and horses. It offers non-prescription medications and supplies, such as flea and tick control products, bone and joint care products, vitamins, treats, nutritional supplements, hygiene products, and household pet supplies; and prescription medications, including heartworm preventatives, flea and tick preventatives, arthritis, dermatitis, thyroid, diabetes, pain medications, heart/blood pressure, and other specialty medications, as well as generic substitutes. The company also sells food, beds, crates, stairs, and other pet supplies. It sells its products through its Internet website; mobile app; customer support center; and direct mail/print, which includes brochures and postcards. The company was incorporated in 1996 and is headquartered in Delray Beach, Florida.
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