Revolve Group (NYSE:RVLV – Get Free Report) and AutoZone (NYSE:AZO – Get Free Report) are both consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, profitability, institutional ownership, valuation and earnings.
Profitability
This table compares Revolve Group and AutoZone’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Revolve Group | 5.54% | 13.38% | 8.71% |
| AutoZone | 12.40% | -80.35% | 12.33% |
Analyst Ratings
This is a summary of recent ratings for Revolve Group and AutoZone, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Revolve Group | 0 | 6 | 7 | 0 | 2.54 |
| AutoZone | 0 | 6 | 20 | 1 | 2.81 |
Valuation and Earnings
This table compares Revolve Group and AutoZone”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Revolve Group | $1.23 billion | 1.23 | $61.71 million | $1.01 | 21.00 |
| AutoZone | $18.94 billion | 2.54 | $2.50 billion | $145.45 | 20.23 |
AutoZone has higher revenue and earnings than Revolve Group. AutoZone is trading at a lower price-to-earnings ratio than Revolve Group, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
67.6% of Revolve Group shares are held by institutional investors. Comparatively, 92.7% of AutoZone shares are held by institutional investors. 42.7% of Revolve Group shares are held by company insiders. Comparatively, 2.6% of AutoZone shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Risk and Volatility
Revolve Group has a beta of 1.61, meaning that its stock price is 61% more volatile than the S&P 500. Comparatively, AutoZone has a beta of 0.34, meaning that its stock price is 66% less volatile than the S&P 500.
Summary
AutoZone beats Revolve Group on 10 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 AutoZone
AutoZone, Inc. retails and distributes automotive replacement parts and accessories in the United States, Mexico, and Brazil. The company provides various products for cars, sport utility vehicles, vans, and light trucks, including new and remanufactured automotive hard parts, maintenance items, accessories, and non-automotive products. It also offers A/C compressors, batteries and accessories, bearings, belts and hoses, calipers, chassis, clutches, CV axles, engines, fuel pumps, fuses, ignition and lighting products, mufflers, radiators, starters and alternators, thermostats, and water pumps, as well as tire repairs. In addition, the company provides maintenance products, such as antifreeze and windshield washer fluids; brake drums, rotors, shoes, and pads; brake and power steering fluids, and oil and fuel additives; oil and transmission fluids; oil, cabin, air, fuel, and transmission filters; oxygen sensors; paints and accessories; refrigerants and accessories; shock absorbers and struts; spark plugs and wires; and windshield wipers. Further, it offers air fresheners, cell phone accessories, drinks and snacks, floor mats and seat covers, interior and exterior accessories, mirrors, performance products, protectants and cleaners, sealants and adhesives, steering wheel covers, tools, vehicle entertainment systems, and wash and wax products, as well as towing services. Additionally, the company provides a sales program that offers commercial credit and delivery of parts and other products; sells automotive diagnostic and repair software under the ALLDATA brand through alldata.com and alldatadiy.com; and automotive hard parts, maintenance items, accessories, and non-automotive products through autozone.com. AutoZone, Inc. was founded in 1979 and is headquartered in Memphis, Tennessee.
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