Revolve Group (NYSE:RVLV – Get Free Report) and Innovative Designs (OTCMKTS:IVDN – Get Free Report) are both small-cap consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, valuation, earnings, analyst recommendations, profitability and risk.
Analyst Recommendations
This is a summary of recent ratings for Revolve Group and Innovative Designs, as reported 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 currently has a consensus target price of $27.62, indicating a potential downside of 0.76%. Given Revolve Group’s stronger consensus rating and higher possible upside, research analysts clearly believe Revolve Group is more favorable than Innovative Designs.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Revolve Group | $1.13 billion | 1.76 | $49.56 million | $0.76 | 36.61 |
| Innovative Designs | $2.77 million | 3.75 | $500,000.00 | $0.03 | 9.00 |
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.
Risk & Volatility
Revolve Group has a beta of 1.79, meaning that its share price is 79% more volatile than the S&P 500. Comparatively, Innovative Designs has a beta of -2.89, meaning that its share price is 389% less volatile than the S&P 500.
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 | 17.87% | 28.32% | 24.77% |
Institutional & Insider Ownership
67.6% of Revolve Group shares are held by institutional investors. 46.6% of Revolve Group shares are held by company insiders. Comparatively, 24.4% of Innovative Designs shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
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.
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