Financial Contrast: ATRenew (NYSE:RERE) & RideNow Group (NASDAQ:RDNW)

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

Insider and Institutional Ownership

66.1% of RideNow Group shares are owned by institutional investors. Comparatively, 19.3% of ATRenew shares are owned by institutional investors. 55.3% of RideNow Group shares are owned by company insiders. Comparatively, 10.7% of ATRenew shares are owned 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.

Profitability

This table compares RideNow Group and ATRenew’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%
ATRenew	1.90%	11.48%	7.98%

Analyst Ratings

This is a summary of recent ratings and target prices for RideNow Group and ATRenew, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RideNow Group	1	2	0	0	1.67
ATRenew	0	1	1	0	2.50

RideNow Group presently has a consensus price target of $7.50, indicating a potential upside of 9.81%. ATRenew has a consensus price target of $5.50, indicating a potential upside of 24.58%. Given ATRenew’s stronger consensus rating and higher probable upside, analysts clearly believe ATRenew is more favorable than RideNow Group.

Volatility and Risk

RideNow Group has a beta of 1.18, suggesting that its share price is 18% more volatile than the S&P 500. Comparatively, ATRenew has a beta of 0.31, suggesting that its share price is 69% less volatile than the S&P 500.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RideNow Group	$1.08 billion	0.24	-$52.40 million	($1.24)	-5.51
ATRenew	$3.01 billion	0.32	$48.09 million	$0.25	17.66

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

Summary

ATRenew beats RideNow Group on 11 of the 14 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 ATRenew

ATRenew Inc., through its subsidiaries, operates pre-owned consumer electronics transactions and services platform in the People's Republic of China. It primarily sells mobile phones, laptops, tablets, drones, digital cameras; and vintage bags, watches, liquor, gold, and various household goods through its online platforms and offline stores, as well as provides services to third-party merchants to sell the products through its platforms. The company was formerly known as AiHuiShou International Co. Ltd. and changed its name to ATRenew Inc. November 2021. The company was incorporated in 2011 and is headquartered in Shanghai, the People's Republic of China.