Innovative Designs (OTCMKTS:IVDN) and Revolve Group (NYSE:RVLV) Financial Comparison

Revolve Group (NYSE:RVLV) and Innovative Designs (OTCMKTS:IVDN) are both consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, profitability, earnings, dividends and institutional ownership.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Revolve Group	$1.13 billion	1.80	$49.56 million	$0.76	37.57
Innovative Designs	$1.38 million	5.66	$100,000.00	$0.03	6.77

Revolve Group has higher revenue and earnings than Innovative Designs. Innovative Designs 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 breakdown of current ratings and target prices for Revolve Group and Innovative Designs, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Revolve Group	0	7	8	1	2.63
Innovative Designs	0	0	0	0	0.00

Revolve Group presently has a consensus price target of $27.62, suggesting a potential downside of 3.29%. Given Revolve Group’s stronger consensus rating and higher possible upside, equities analysts plainly believe Revolve Group is more favorable than Innovative Designs.

Profitability

This table compares Revolve Group and Innovative Designs’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Revolve Group	4.64%	11.26%	7.30%
Innovative Designs	18.54%	29.89%	26.00%

Institutional & Insider Ownership

67.6% of Revolve Group shares are owned by institutional investors. 46.6% of Revolve Group shares are owned by company insiders. Comparatively, 24.4% of Innovative Designs shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

Revolve Group has a beta of 1.75, suggesting that its share price is 75% more volatile than the S&P 500. Comparatively, Innovative Designs has a beta of -2.89, suggesting that its share price is 389% less volatile than the S&P 500.

Summary

Revolve Group beats Innovative Designs on 11 of the 15 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 Innovative Designs

Innovative Designs, Inc. engages in manufacture and marketing of cold weather recreational and industrial clothing products in the United States and Canada. The company operates in two segments, Apparel and House Wrap. It offers arctic armor line products, including jackets, bibs, and gloves for ice fisherman, snowmobilers, utility workers, oil/gas pipeline workers, railroad workers, construction workers, ski resort workers, and police and first responders; and house wrap that provides barrier protection and moisture vapor transmission and insulation for the building construction industry. In addition, it offers INSULTEX material in bulk to non-competing customers; products that restore the waterproof character of the outer side of its arctic armor clothing; and cold weather headgears and base insulation clothing products. The company primarily sells its products through independent sales agents, agencies, retailers, and distributors, as well as through website. The company was incorporated in 2002 and is based in Pittsburgh, Pennsylvania.