Reviewing Revolve Group (NYSE:RVLV) and G-III Apparel Group (NASDAQ:GIII)

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

Risk and Volatility

Revolve Group has a beta of 1.67, indicating that its stock price is 67% more volatile than the S&P 500. Comparatively, G-III Apparel Group has a beta of 1.29, indicating that its stock price is 29% more volatile than the S&P 500.

Insider and Institutional Ownership

67.6% of Revolve Group shares are owned by institutional investors. Comparatively, 92.1% of G-III Apparel Group shares are owned by institutional investors. 42.7% of Revolve Group shares are owned by company insiders. Comparatively, 15.0% of G-III Apparel Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Revolve Group and G-III Apparel Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Revolve Group	5.05%	12.17%	7.95%
G-III Apparel Group	4.34%	5.59%	3.72%

Analyst Recommendations

This is a breakdown of current recommendations for Revolve Group and G-III Apparel Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Revolve Group	0	6	8	0	2.57
G-III Apparel Group	1	2	3	1	2.57

Revolve Group currently has a consensus price target of $29.33, indicating a potential upside of 34.93%. G-III Apparel Group has a consensus price target of $33.00, indicating a potential downside of 5.09%. Given Revolve Group’s higher probable upside, analysts clearly believe Revolve Group is more favorable than G-III Apparel Group.

Earnings and Valuation

This table compares Revolve Group and G-III Apparel Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Revolve Group	$1.27 billion	1.22	$61.71 million	$0.89	24.43
G-III Apparel Group	$2.96 billion	0.50	$67.35 million	$2.83	12.29

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

Summary

Revolve Group beats G-III Apparel Group on 9 of the 14 factors compared between the two stocks.

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.

About G-III Apparel Group

G-III Apparel Group, Ltd. designs, sources, and markets women's and men's apparel in the United States and internationally. The company operates through two segments, Wholesale Operations and Retail Operations. Its products include outerwear, dresses, sportswear, swimwear, women's suits, and women's performance wear; and women's handbags, footwear, small leather goods, cold weather accessories, and luggage. The company markets apparel and other products under the proprietary brands, including DKNY, Donna Karan, Karl Lagerfeld, Karl Lagerfeld Paris, Vilebrequin, G.H. Bass, Eliza J, Jessica Howard, Andrew Marc, Marc New York, Wilsons Leather, Sonia Rykiel, and G-III Sports by Carl Banks; and licensed brands, such as Calvin Klein, Tommy Hilfiger, Levi's, Guess?, Kenneth Cole, Cole Haan, Vince Camuto, Margaritaville, and Dockers. It has licenses with the National Football League, National Basketball Association, Major League Baseball, and National Hockey League, as well as approximately 150 U.S. colleges and universities. The company offers its products to department, specialty, and mass merchant retail stores. It also sells its products online. G-III Apparel Group, Ltd. was founded in 1956 and is based in New York, New York.