Analyzing Revolve Group (NYSE:RVLV) & Overstock.com (NYSE:OSTK)

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Revolve Group (NYSE:RVLV) and Overstock.com (NASDAQ:OSTK) are both small-cap retail/wholesale companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, dividends, analyst recommendations, earnings, institutional ownership, risk and valuation.

Profitability

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

Net Margins Return on Equity Return on Assets
Revolve Group N/A N/A N/A
Overstock.com -8.90% -65.78% -29.41%

Insider & Institutional Ownership

25.5% of Revolve Group shares are owned by institutional investors. Comparatively, 49.4% of Overstock.com shares are owned by institutional investors. 19.4% of Overstock.com shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and price targets for Revolve Group and Overstock.com, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Revolve Group 0 4 9 0 2.69
Overstock.com 0 0 2 0 3.00

Revolve Group currently has a consensus price target of $34.27, suggesting a potential upside of 64.14%. Overstock.com has a consensus price target of $32.50, suggesting a potential upside of 281.01%. Given Overstock.com’s stronger consensus rating and higher probable upside, analysts plainly believe Overstock.com is more favorable than Revolve Group.

Earnings & Valuation

This table compares Revolve Group and Overstock.com’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Revolve Group N/A N/A N/A N/A N/A
Overstock.com $1.82 billion 0.17 -$206.07 million ($6.21) -1.37

Revolve Group has higher earnings, but lower revenue than Overstock.com.

Summary

Overstock.com beats Revolve Group on 5 of the 9 factors compared between the two stocks.

About Revolve Group

Revolve Group, Inc. operates as an online fashion retailer for consumers in the United States and internationally. The company operates a platform that connects consumers and global fashion influencers, as well as emerging, established, and owned brands. It provides women's apparel, footwear, accessories, and beauty styles under a range of established and emerging brands, as well as owned brands. Revolve Group, Inc. was founded in 2003 and is headquartered in Cerritos, California.

About Overstock.com

Overstock.com, Inc. operates as an online retailer in the United States and internationally. It operates through Retail and tZERO segments. The company offers furniture; and home d├ęcor, including rugs, bedding and bath, home improvement, kitchen items, and other related products. It also operates Worldstock Fair Trade, a store that provides handcrafted products; Pet Adoptions, a free service and portal to display pets available for adoption; and Overstock Hotels, a portal that enables customers to search and book properties within its Website. In addition, the company operates Supplier Oasis, a single integration point for partners to manage their products, inventory, and sales channels, as well as obtain multi-channel fulfillment services through its distribution network; and offers businesses advertising products or services on its Website. It provides its products and services through its Internet Websites, such as overstock.com, o.co, and o.biz. Further, it focuses on the development and commercialization of financial applications of blockchain technologies. The company was formerly known as D2-Discounts Direct and changed its name to Overstock.com, Inc. in October 1999. Overstock.com, Inc. was founded in 1997 and is headquartered in Midvale, Utah.

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