Head to Head Review: RideNow Group (NASDAQ:RDNW) and Wayfair (NYSE:W)

RideNow Group (NASDAQ:RDNW) and Wayfair (NYSE:W) are both retail/wholesale companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, valuation, risk, profitability, analyst recommendations, earnings and institutional ownership.

Volatility & Risk

RideNow Group has a beta of 1.15, suggesting that its stock price is 15% more volatile than the S&P 500. Comparatively, Wayfair has a beta of 3.02, suggesting that its stock price is 202% more volatile than the S&P 500.

Earnings & Valuation

This table compares RideNow Group and Wayfair”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RideNow Group	$1.10 billion	0.24	-$52.40 million	($1.24)	-5.58
Wayfair	$12.46 billion	0.98	-$313.00 million	($2.34)	-39.33

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
RideNow Group	-4.28%	-2,628.57%	-1.85%
Wayfair	-2.41%	-2.20%	1.92%

Analyst Recommendations

This is a summary of recent recommendations for RideNow Group and Wayfair, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RideNow Group	1	2	0	0	1.67
Wayfair	1	10	18	1	2.63

RideNow Group presently has a consensus price target of $7.50, suggesting a potential upside of 8.38%. Wayfair has a consensus price target of $99.68, suggesting a potential upside of 8.30%. Given RideNow Group’s higher probable upside, equities analysts plainly believe RideNow Group is more favorable than Wayfair.

Institutional & Insider Ownership

66.1% of RideNow Group shares are held by institutional investors. Comparatively, 89.7% of Wayfair shares are held by institutional investors. 55.3% of RideNow Group shares are held by company insiders. Comparatively, 18.4% of Wayfair shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Wayfair beats RideNow Group on 10 of the 15 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 Wayfair

Wayfair Inc. provides e-commerce business in the United States and internationally. The company offers approximately thirty million products for the home sector. It offers online selections of furniture, décor, housewares, and home improvement products through its sites consisting of Wayfair, Joss & Main, AllModern, Birch Lane, Perigold, and Wayfair Professional. The company offers its products under the Three Posts and Mercury Row brand name. The company was founded in 2002 and is headquartered in Boston, Massachusetts.