Contrasting MarineMax (NYSE:HZO) and Revolve Group (NYSE:RVLV)

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

Valuation & Earnings

This table compares MarineMax and Revolve Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MarineMax	$2.31 billion	0.50	-$31.63 million	$0.14	373.75
Revolve Group	$1.23 billion	1.23	$61.71 million	$1.01	20.97

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

Volatility and Risk

MarineMax has a beta of 1.7, suggesting that its stock price is 70% more volatile than the S&P 500. Comparatively, Revolve Group has a beta of 1.7, suggesting that its stock price is 70% more volatile than the S&P 500.

Institutional & Insider Ownership

92.8% of MarineMax shares are held by institutional investors. Comparatively, 67.6% of Revolve Group shares are held by institutional investors. 3.2% of MarineMax 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, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MarineMax	0.18%	1.51%	0.59%
Revolve Group	5.54%	13.38%	8.71%

Analyst Recommendations

This is a summary of recent recommendations and price targets for MarineMax and Revolve Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MarineMax	0	7	1	0	2.12
Revolve Group	0	6	7	0	2.54

MarineMax currently has a consensus price target of $43.00, indicating a potential downside of 17.82%. Revolve Group has a consensus price target of $30.08, indicating a potential upside of 42.02%. Given Revolve Group’s stronger consensus rating and higher possible upside, analysts clearly believe Revolve Group is more favorable than MarineMax.

Summary

Revolve Group beats MarineMax on 10 of the 13 factors compared between the two stocks.

About MarineMax

MarineMax, Inc. operates as a recreational boat and yacht retailer and superyacht services company in the United States. It operates in two segments, Retail Operations and Product Manufacturing. The company sells new and used recreational boats, including pleasure and fishing boats, mega-yachts, yachts, sport cruisers, motor yachts, e-power yachts, pontoon boats, ski boats, jet boats, and other recreational boats. It also offers marine parts and accessories comprising marine electronics; dock and anchoring products that include boat fenders, lines, and anchors; boat covers; trailer parts; water sport accessories, which comprise tubes, lines, wakeboards, and skis; engine parts; oils; lubricants; steering and control systems; corrosion control products and service products; high-performance accessories, including propellers and instruments; and a line of boating accessories, such as life jackets, inflatables, and water sports equipment. In addition, the company provides novelty items, such as shirts, caps, and license plates; marine engines and equipment; maintenance, repair, and slip and storage services; and boat or yacht brokerage services, as well as yacht charters and power catamarans. Further, it offers new or used boat finance services; arranges insurance coverage, including boat property, disability, undercoating, gel sealant, fabric protection, trailer tire and wheel protection, and casualty insurance coverage; and manufactures and sells sport yachts and yachts. Additionally, the company operates MarineMax vacations in Tortola and British Virgin Islands. It also markets and sells its products through offsite locations and print catalog. MarineMax, Inc. was incorporated in 1998 and is based in Clearwater, Florida.

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.