Comparing Murphy USA (NYSE:MUSA) & Revolve Group (NYSE:RVLV)

Revolve Group (NYSE:RVLV) and Murphy USA (NYSE:MUSA) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, institutional ownership, profitability and dividends.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Revolve Group and Murphy USA, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Revolve Group	0	6	7	0	2.54
Murphy USA	0	5	6	0	2.55

Revolve Group currently has a consensus price target of $30.08, suggesting a potential upside of 40.61%. Murphy USA has a consensus price target of $606.89, suggesting a potential upside of 18.73%. Given Revolve Group’s higher possible upside, analysts plainly believe Revolve Group is more favorable than Murphy USA.

Risk and Volatility

Revolve Group has a beta of 1.61, suggesting that its stock price is 61% more volatile than the S&P 500. Comparatively, Murphy USA has a beta of 0.25, suggesting that its stock price is 75% less volatile than the S&P 500.

Earnings & Valuation

This table compares Revolve Group and Murphy USA”s top-line 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	1.24	$61.71 million	$1.01	21.18
Murphy USA	$19.38 billion	0.49	$470.60 million	$32.84	15.57

Murphy USA has higher revenue and earnings than Revolve Group. Murphy USA 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 Murphy USA’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%
Murphy USA	2.87%	96.01%	12.95%

Insider & Institutional Ownership

67.6% of Revolve Group shares are held by institutional investors. Comparatively, 80.8% of Murphy USA shares are held by institutional investors. 42.7% of Revolve Group shares are held by company insiders. Comparatively, 9.0% of Murphy USA shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

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 Murphy USA

Murphy USA Inc. engages in marketing of retail motor fuel products and convenience merchandise. The company operates retail stores under the Murphy USA, Murphy Express, and QuickChek brands, as well as operates non-fuel convenience stores. It operates retail gasoline stores principally in the Southeast, Southwest, and Midwest United States. Murphy USA Inc. was founded in 1996 and is headquartered in El Dorado, Arkansas.