Head-To-Head Comparison: Revolve Group (NYSE:RVLV) vs. Forward Industries (NASDAQ:FORD)

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

Institutional & Insider Ownership

67.6% of Revolve Group shares are owned by institutional investors. 7.0% of Forward Industries shares are owned by insiders. Comparatively, 46.6% of Revolve Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Forward Industries	$25.19 million	31.97	-$1.95 million	($4.46)	-2.09
Revolve Group	$1.13 billion	1.97	$49.56 million	$0.76	41.15

Revolve Group has higher revenue and earnings than Forward Industries. Forward 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.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Forward Industries and Revolve Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Forward Industries	1	0	0	0	1.00
Revolve Group	0	8	9	0	2.53

Revolve Group has a consensus price target of $27.14, suggesting a potential downside of 13.21%. Given Revolve Group’s stronger consensus rating and higher possible upside, analysts plainly believe Revolve Group is more favorable than Forward Industries.

Volatility and Risk

Forward Industries has a beta of 0.61, suggesting that its share price is 39% less volatile than the S&P 500. Comparatively, Revolve Group has a beta of 1.75, suggesting that its share price is 75% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Forward Industries	-14.52%	-1,522.78%	-44.33%
Revolve Group	4.64%	11.26%	7.30%

Summary

Revolve Group beats Forward Industries on 13 of the 14 factors compared between the two stocks.

About Forward Industries

Forward Industries, Inc., together with its subsidiaries, designs, manufactures, sources, markets, and distributes carry and protective solutions. The company operates in two segments: OEM Distribution and Design. The OEM Distribution segment sources and distributes carrying cases and other accessories for medical monitoring and diagnostic kits; and various other portable electronic and non-electronic products, such as sporting and recreational products, bar code scanners, GPS location devices, tablets, and firearms. The Design segment provides hardware and software product design and engineering services. The company sells its products to original equipment manufacturers in the United States, China, Germany, Poland, and internationally. Forward Industries, Inc. was incorporated in 1961 and is based in Hauppauge, New York.

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.