Analyzing Winmark (NASDAQ:WINA) & Revolve Group (NYSE:RVLV)

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

Valuation & Earnings

This table compares Winmark 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
Winmark	$86.53 million	11.98	$41.65 million	$11.02	26.20
Revolve Group	$1.23 billion	1.22	$61.71 million	$1.01	20.85

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

Risk & Volatility

Winmark has a beta of 0.54, meaning that its share price is 46% less 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.

Insider & Institutional Ownership

73.3% of Winmark shares are held by institutional investors. Comparatively, 67.6% of Revolve Group shares are held by institutional investors. 10.4% of Winmark 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 hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Winmark	47.09%	-99.47%	103.54%
Revolve Group	5.54%	13.38%	8.71%

Analyst Recommendations

This is a summary of recent ratings for Winmark and Revolve Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Winmark	0	1	0	0	2.00
Revolve Group	0	6	7	0	2.54

Revolve Group has a consensus target price of $30.08, suggesting a potential upside of 42.86%. Given Revolve Group’s stronger consensus rating and higher probable upside, analysts plainly believe Revolve Group is more favorable than Winmark.

Summary

Revolve Group beats Winmark on 8 of the 14 factors compared between the two stocks.

About Winmark

Winmark Corporation, a resale company operates as a franchisor for small business in the United States and Canada. The company franchises retail stores concepts that buy, sell and trade merchandise. It also operates middle-market equipment leasing business. In addition, the company buys and sells used clothing and accessories geared toward the teenage and young adult market under Plato’s Closet brand; and operates stores which buys and sells used and new children’s clothing, toys, furniture, equipment, and accessories primarily to parents of children ages infant to 12 years under the Once Upon A Child brand. Further, it buys, sells, trades in, and used and new sporting goods, equipment, and accessories for various athletic activities including team sports, such as baseball/softball, hockey, football, lacrosse, and soccer, as well as fitness, ski/snowboard, golf, and others under the Play It Again Sports brand; and buys and sells used women’s apparel, shoes, and accessories under the Style Encore brand. Additionally, the company buys, sells, trades in, and used and new musical instruments, speakers, amplifiers, music-related electronics, and related accessories under the Music Go Round brand. Winmark Corporation was incorporated in 1988 and is headquartered in Minneapolis, Minnesota.

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.