Financial Survey: RideNow Group (NASDAQ:RDNW) vs. Burlington Stores (NYSE:BURL)

RideNow Group (NASDAQ:RDNW) and Burlington Stores (NYSE:BURL) are both consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, earnings, risk and dividends.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for RideNow Group and Burlington Stores, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RideNow Group	1	2	0	0	1.67
Burlington Stores	0	6	14	0	2.70

RideNow Group presently has a consensus price target of $8.50, indicating a potential upside of 45.55%. Burlington Stores has a consensus price target of $370.75, indicating a potential upside of 39.57%. Given RideNow Group’s higher probable upside, equities analysts clearly believe RideNow Group is more favorable than Burlington Stores.

Profitability

This table compares RideNow Group and Burlington Stores’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RideNow Group	-0.76%	-2,628.57%	-1.17%
Burlington Stores	5.85%	41.72%	7.61%

Risk & Volatility

RideNow Group has a beta of 1.19, meaning that its stock price is 19% more volatile than the S&P 500. Comparatively, Burlington Stores has a beta of 1.42, meaning that its stock price is 42% more volatile than the S&P 500.

Insider & Institutional Ownership

66.1% of RideNow Group shares are held by institutional investors. 55.3% of RideNow Group shares are held by insiders. Comparatively, 1.3% of Burlington Stores shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares RideNow Group and Burlington Stores”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RideNow Group	$1.08 billion	0.21	-$52.40 million	($0.23)	-25.39
Burlington Stores	$11.57 billion	1.44	$610.15 million	$11.14	23.85

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

Summary

Burlington Stores 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 Burlington Stores

Burlington Stores, Inc. operates as a retailer of branded merchandise in the United States. The company provides fashion-focused merchandise, including women's ready-to-wear apparel, menswear, youth apparel, footwear, accessories, toys, gifts, and coats, as well as baby, home, and beauty products. It operates stores under the Burlington Stores, and Cohoes Fashions brand names in Washington D.C. and Puerto Rico. Burlington Stores, Inc. was founded in 1972 and is headquartered in Burlington, New Jersey.