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 superior stock? We will compare the two companies based on the strength of their analyst recommendations, earnings, profitability, valuation, risk, institutional ownership 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%

Valuation & Earnings

This table compares Crocs and Revolve Group”s top-line revenue, earnings per share (EPS) 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.

Volatility & Risk

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

Analyst Ratings

This is a summary of current ratings and target prices for Crocs and Revolve Group, as reported 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, indicating a potential downside of 4.86%. Revolve Group has a consensus price target of $29.33, indicating a potential upside of 14.11%. Given Revolve Group’s higher probable upside, analysts clearly believe Revolve Group is more favorable than Crocs.

Insider and Institutional 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 insiders. Comparatively, 42.7% of Revolve Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

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.