Financial Contrast: Revolve Group (NYSE:RVLV) & Grasim Industries (OTCMKTS:GRSXY)

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

Valuation & Earnings

This table compares Grasim Industries and Revolve Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grasim Industries	$17.74 billion	0.75	$437.27 million	$0.76	25.65
Revolve Group	$1.23 billion	1.34	$61.71 million	$0.85	26.96

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

Volatility & Risk

Grasim Industries has a beta of -0.24, meaning that its share price is 124% less volatile than the S&P 500. Comparatively, Revolve Group has a beta of 1.78, meaning that its share price is 78% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and price targets for Grasim Industries and Revolve Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grasim Industries	0	0	0	0	0.00
Revolve Group	0	7	8	0	2.53

Revolve Group has a consensus target price of $29.50, indicating a potential upside of 28.74%. Given Revolve Group’s stronger consensus rating and higher probable upside, analysts clearly believe Revolve Group is more favorable than Grasim Industries.

Institutional and Insider Ownership

67.6% of Revolve Group shares are held by institutional investors. 46.6% of Revolve Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Grasim Industries	2.66%	5.56%	1.73%
Revolve Group	5.03%	12.12%	7.90%

Summary

Revolve Group beats Grasim Industries on 12 of the 14 factors compared between the two stocks.

About Grasim Industries

Grasim Industries Limited operates in fibre, yarn, pulp, chemicals, textile, fertilizers, and insulators businesses in India and internationally. The company operates through Viscose, Chemicals, Cement, Financial Services, and Others segments. It provides viscose staple fiber, a man-made biodegradable fiber for use in apparels, home textiles, dress materials, knit wear products, and non-woven applications; wood pulp products; viscose filament yarn, a natural fibre for manufacturing fabrics such as georgettes, crepes, chiffons, and others; and textile products, such as linen and wool. The company offers various chemical products, including chlor-alkali and epoxy resin products. In addition, it provides electrical insulators for transmission lines and substations, as well as equipment and railways. Further, the company offers grey cement; white cement; ready mix concrete; and cement-based putty. Additionally, it provides various financial services comprising non-bank financial, life insurance, asset management, housing finance, equity broking, wealth management, general insurance advisory, and health insurance services. The company involved in solar power designing, engineering procurement, and commissioning business. Grasim Industries Limited was incorporated in 1947 and is based in Mumbai, India.

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.