Financial Comparison: Revolve Group (NYSE:RVLV) & J-Long Group (NASDAQ:JL)

J-Long Group (NASDAQ:JL) and Revolve Group (NYSE:RVLV) are both small-cap consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, earnings, dividends, risk, institutional ownership, profitability and valuation.

Analyst Recommendations

This is a breakdown of current ratings and price targets for J-Long Group and Revolve Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
J-Long Group	1	0	0	0	1.00
Revolve Group	0	7	9	0	2.56

Revolve Group has a consensus target price of $26.21, indicating a potential upside of 18.82%. Given Revolve Group’s stronger consensus rating and higher possible upside, analysts plainly believe Revolve Group is more favorable than J-Long Group.

Institutional and Insider Ownership

67.6% of Revolve Group shares are owned by institutional investors. 43.8% of Revolve Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares J-Long Group and Revolve Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
J-Long Group	N/A	N/A	N/A
Revolve Group	4.64%	11.26%	7.30%

Volatility and Risk

J-Long Group has a beta of -0.46, indicating that its stock price is 146% less volatile than the S&P 500. Comparatively, Revolve Group has a beta of 1.93, indicating that its stock price is 93% more volatile than the S&P 500.

Valuation and Earnings

This table compares J-Long Group and Revolve Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
J-Long Group	$39.08 million	0.38	$2.59 million	N/A	N/A
Revolve Group	$1.13 billion	1.39	$49.56 million	$0.76	29.03

Revolve Group has higher revenue and earnings than J-Long Group.

Summary

Revolve Group beats J-Long Group on 12 of the 12 factors compared between the two stocks.

About J-Long Group

J-Long Group Limited distributes reflective and non-reflective garment trims in Asia, Hong Kong, the People's Republic of China, and internationally. The company offers heat transfers, fabrics, woven labels and tapes, sewing badges, piping, zipper pullers, and drawcords. It also sells through online. The company was founded in 1985 and is based in Tsuen Wan, Hong Kong.

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.