Critical Review: Revolve Group (NYSE:RVLV) vs. Beyond (NYSE:BYON)

Revolve Group (NYSE:RVLV) and Beyond (NYSE:BYON) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, valuation, institutional ownership, risk, dividends, earnings and analyst recommendations.

Analyst Ratings

This is a summary of current ratings and recommmendations for Revolve Group and Beyond, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Revolve Group	1	8	7	0	2.38
Beyond	1	3	4	0	2.38

Revolve Group presently has a consensus price target of $26.19, indicating a potential downside of 21.48%. Beyond has a consensus price target of $16.50, indicating a potential upside of 166.99%. Given Beyond’s higher possible upside, analysts clearly believe Beyond is more favorable than Revolve Group.

Insider and Institutional Ownership

67.6% of Revolve Group shares are held by institutional investors. Comparatively, 76.3% of Beyond shares are held by institutional investors. 46.6% of Revolve Group shares are held by insiders. Comparatively, 1.2% of Beyond shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Risk and Volatility

Revolve Group has a beta of 2.05, suggesting that its share price is 105% more volatile than the S&P 500. Comparatively, Beyond has a beta of 3.7, suggesting that its share price is 270% more volatile than the S&P 500.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Revolve Group	$1.07 billion	2.20	$28.15 million	$0.56	59.55
Beyond	$1.48 billion	0.19	-$307.84 million	($7.39)	-0.84

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Revolve Group	3.72%	10.17%	6.29%
Beyond	-22.82%	-69.32%	-35.45%

Summary

Revolve Group beats Beyond on 9 of the 13 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 Beyond

Beyond, Inc. operates as an online retailer of furniture and home furnishings products in the United States and Canada. The company offers furniture, bedding and bath, patio and outdoor gear, area rugs, tabletop and cookware, décor, storage and organization, small appliances, home improvement, and other products under the Bed Bath & Beyond brand. The company provides its products and services through its e-commerce platform accessible through its mobile application, which includes bedbathandbeyond.com, bedbathandbeyond.ca, and overstockgovernment.com. It also offers businesses advertising products or services on its website; Marketplace, a service that allows its partners to sell their products through third party sites; product sales to international customers using third party logistics providers; and Supplier Oasis, a singular integration point that enables partners to manage their products, inventory, and sales channels, as well as access multi-channel fulfillment services through its distribution network. The company was formerly known as Overstock.com, Inc. and changed its name to Beyond, Inc. in November 2023. Beyond, Inc. was founded in 1997 and is headquartered in Midvale, Utah.