PVH (NYSE:PVH) & Revolve Group (NYSE:RVLV) Critical Analysis

Revolve Group (NYSE:RVLV) and PVH (NYSE:PVH) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, dividends, risk, profitability, analyst recommendations and institutional ownership.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Revolve Group	$1.13 billion	1.58	$49.56 million	$0.76	32.96
PVH	$8.65 billion	0.37	$598.50 million	$6.67	10.44

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

Profitability

This table compares Revolve Group and PVH’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%
PVH	3.87%	11.44%	4.98%

Volatility & Risk

Revolve Group has a beta of 1.79, meaning that its stock price is 79% more volatile than the S&P 500. Comparatively, PVH has a beta of 1.72, meaning that its stock price is 72% more volatile than the S&P 500.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Revolve Group	0	7	8	1	2.63
PVH	0	9	8	0	2.47

Revolve Group presently has a consensus target price of $27.62, indicating a potential upside of 10.24%. PVH has a consensus target price of $91.60, indicating a potential upside of 31.50%. Given PVH’s higher probable upside, analysts plainly believe PVH is more favorable than Revolve Group.

Institutional and Insider Ownership

67.6% of Revolve Group shares are held by institutional investors. Comparatively, 97.3% of PVH shares are held by institutional investors. 43.8% of Revolve Group shares are held by company insiders. Comparatively, 1.2% of PVH shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Revolve Group beats PVH on 8 of the 14 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 PVH

PVH Corp. operates as an apparel company in the United States and internationally. The company operates through Tommy Hilfiger North America, Tommy Hilfiger International, Calvin Klein North America, Calvin Klein International, and Heritage Brands Wholesale segments. It designs and markets men's, women's, and children's branded apparel, footwear and accessories, underwear, sleepwear, outerwear, home furnishings, luggage, dresses, suits and swimwear, activewear, sportswear, socks and accessories, outerwear, golf products, footwear, watches and jewelry, eyeglasses and non-ophthalmic sunglasses, jeans wear, performance apparel, intimate apparel, dress shirts, handbags, fragrance, small leather goods, and other related products; and men's and boy's tailored clothing products, duvets, pillows, mattress pads and toppers, and feather beds. The company offers its products under its own brands, such as TOMMY HILFIGER, TOMMY JEANS, Calvin Klein, CK Calvin Klein, Calvin Klein Jeans, Calvin Klein Underwear, and Calvin Klein Performance, as well as various other owned, licensed, and private label brands. It distributes its products at wholesale in department, chain, and specialty stores; through warehouse clubs, mass market, and off-price and independent retailers; and through company-operated full-price, outlet stores, and concession locations; and through digital commerce sites. PVH Corp. was founded in 1881 and is based in New York, New York.