Globavend (NASDAQ:GVH) vs. RideNow Group (NASDAQ:RDNW) Critical Analysis

RideNow Group (NASDAQ:RDNW) and Globavend (NASDAQ:GVH) are both small-cap retail/wholesale companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, dividends, earnings, risk and institutional ownership.

Profitability

This table compares RideNow Group and Globavend’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RideNow Group	-9.35%	-223.85%	-4.01%
Globavend	N/A	N/A	N/A

Valuation & Earnings

This table compares RideNow Group and Globavend”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RideNow Group	$1.21 billion	0.17	-$78.60 million	($2.80)	-1.91
Globavend	$21.88 million	0.01	$1.34 million	N/A	N/A

Globavend has lower revenue, but higher earnings than RideNow Group.

Institutional and Insider Ownership

66.1% of RideNow Group shares are owned by institutional investors. 54.7% of RideNow Group 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.

Risk & Volatility

RideNow Group has a beta of 1.24, meaning that its stock price is 24% more volatile than the S&P 500. Comparatively, Globavend has a beta of 3.71, meaning that its stock price is 271% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for RideNow Group and Globavend, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RideNow Group	1	3	1	0	2.00
Globavend	2	0	0	1	2.00

RideNow Group presently has a consensus price target of $4.00, indicating a potential downside of 25.09%. Globavend has a consensus price target of $80.00, indicating a potential upside of 2,598.15%. Given Globavend’s higher probable upside, analysts plainly believe Globavend is more favorable than RideNow Group.

Summary

Globavend beats RideNow Group on 7 of the 12 factors compared between the two stocks.

About RideNow Group

RumbleOn, Inc. primarily operates as a powersports retailer in the United States. It operates in two segments, Powersports and Vehicle Transportation Services. The Powersports segment provides new and pre-owned motorcycles, all-terrain vehicles, utility terrain or side-by-side vehicles, personal watercraft, snowmobiles, and other powersports products. It also offers parts, apparel, accessories, finance and insurance products and services, and aftermarket products, as well as repair and maintenance services. The Vehicle Transportation Services segment provides asset-light transportation brokerage services facilitating automobile transportation. The company was formerly known as Smart Server, Inc. and changed its name to RumbleOn, Inc. in February 2017. The company was incorporated in 2013 and is based in Irving, Texas.

About Globavend

Globavend Holdings Limited, together with its subsidiaries, provides integrated cross-border logistics services and air freight forwarding services in Hong Kong, Australia, and New Zealand. The company's services include parcel consolidation, air freight forwarding, customs clearance, on-carriage parcel transportation, and delivery. It serves e-commerce merchants and operators of e-commerce platforms. The company was founded in 2016 and is based in Perth, Australia. Globavend Holdings Limited is subsidiary of Globavend Investments Limited.