Head-To-Head Survey: Under Armour (NYSE:UAA) vs. Revolve Group (NYSE:RVLV)

Under Armour (NYSE:UAA) 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 valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.

Valuation & Earnings

This table compares Under Armour 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
Under Armour	$4.97 billion	0.44	-$201.27 million	($1.22)	-4.19
Revolve Group	$1.23 billion	1.02	$61.71 million	$0.89	19.63

Revolve Group has lower revenue, but higher earnings than Under Armour. Under Armour 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 Ratings

This is a summary of current ratings and recommmendations for Under Armour and Revolve Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Under Armour	4	13	1	2	2.05
Revolve Group	0	7	8	0	2.53

Under Armour presently has a consensus price target of $5.98, suggesting a potential upside of 16.95%. Revolve Group has a consensus price target of $29.33, suggesting a potential upside of 67.87%. Given Revolve Group’s stronger consensus rating and higher probable upside, analysts clearly believe Revolve Group is more favorable than Under Armour.

Volatility & Risk

Under Armour has a beta of 1.73, suggesting that its stock price is 73% more volatile than the S&P 500. Comparatively, Revolve Group has a beta of 1.76, suggesting that its stock price is 76% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Under Armour	-9.98%	3.01%	1.05%
Revolve Group	5.05%	12.17%	7.95%

Institutional & Insider Ownership

34.6% of Under Armour shares are owned by institutional investors. Comparatively, 67.6% of Revolve Group shares are owned by institutional investors. 15.6% of Under Armour shares are owned by company insiders. Comparatively, 42.7% of Revolve Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Revolve Group beats Under Armour on 13 of the 15 factors compared between the two stocks.

About Under Armour

Under Armour, Inc., together with its subsidiaries, engages developing, marketing, and distributing performance apparel, footwear, and accessories for men, women, and youth. The company provides its apparel in compression, fitted, and loose fit types. It also offers footwear products for running, training, basketball, cleated sports, recovery, and outdoor applications. In addition, the company provides accessories, which include gloves, bags, headwear, and socks; and engages in brand licensing, digital subscription, advertising, and other digital business activities. It primarily offers its products under the UNDER ARMOUR, ARMOUR, HEATGEAR, COLDGEAR, HOVR, UA, PROTECT THIS HOUSE, I WILL, ARMOUR FLEECE, and ARMOUR BRA brands. The company sells its products through wholesale channels, including national and regional sporting goods chains, independent and specialty retailers, department store chains, mono-branded Under Armour retail stores, institutional athletic departments, and leagues and teams, as well as independent distributors; and directly to consumers through Brand and Factory House stores, as well as through e-commerce websites. It operates in the United States, Canada, Europe, the Middle East, Africa, the Asia-Pacific, and Latin America. The company was incorporated in 1996 and is headquartered in Baltimore, Maryland.

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.