Head to Head Survey: Revolve Group (NYSE:RVLV) and Crocs (NASDAQ:CROX)

Crocs (NASDAQ:CROX) and Revolve Group (NYSE:RVLV) are both consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, earnings, risk, analyst recommendations, valuation and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Crocs	-2.58%	48.29%	15.40%
Revolve Group	5.05%	12.17%	7.95%

Volatility and Risk

Crocs has a beta of 1.55, suggesting that its share price is 55% more volatile than the S&P 500. Comparatively, Revolve Group has a beta of 1.61, suggesting that its share price is 61% more volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Crocs	$4.02 billion	1.66	-$81.20 million	($1.38)	-97.49
Revolve Group	$1.27 billion	1.45	$61.71 million	$0.89	28.88

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

Institutional and Insider Ownership

93.4% of Crocs shares are held by institutional investors. Comparatively, 67.6% of Revolve Group shares are held by institutional investors. 3.1% of Crocs shares are held by company insiders. Comparatively, 42.7% of Revolve Group shares are held 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 recommendations and price targets for Crocs and Revolve Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Crocs	2	6	11	1	2.55
Revolve Group	0	6	7	0	2.54

Crocs presently has a consensus price target of $128.00, suggesting a potential downside of 4.86%. Revolve Group has a consensus price target of $29.33, suggesting a potential upside of 14.11%. Given Revolve Group’s higher possible upside, analysts plainly believe Revolve Group is more favorable than Crocs.

Summary

Crocs beats Revolve Group on 8 of the 15 factors compared between the two stocks.

About Crocs

Crocs, Inc., together with its subsidiaries, designs, develops, manufactures, markets, distributes, and sells casual lifestyle footwear and accessories for men, women, and children under Crocs and HEYDUDE Brand in the United States and internationally. The company offers various footwear products, including clogs, sandals, slides, flips, wedges, platforms, socks, boots, charms, flip flops, sneakers, and slippers. It sells its products through wholesalers, retail stores, e-commerce sites, third-party marketplaces, and kiosks/store-in-store locations. Crocs, Inc. was founded in 1999 and is headquartered in Broomfield, Colorado.

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.