RideNow Group (NASDAQ:RDNW – Get Free Report) and Monotaro (OTCMKTS:MONOY – Get Free Report) are both retail/wholesale companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, valuation, profitability and institutional ownership.
Risk and Volatility
RideNow Group has a beta of 1.24, meaning that its share price is 24% more volatile than the S&P 500. Comparatively, Monotaro has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500.
Institutional & Insider Ownership
66.1% of RideNow Group shares are held by institutional investors. Comparatively, 0.1% of Monotaro shares are held by institutional investors. 54.7% of RideNow Group shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| RideNow Group | 1 | 3 | 1 | 0 | 2.00 |
| Monotaro | 0 | 2 | 0 | 0 | 2.00 |
RideNow Group currently has a consensus price target of $4.00, suggesting a potential downside of 26.74%. Given RideNow Group’s higher probable upside, equities research analysts clearly believe RideNow Group is more favorable than Monotaro.
Earnings and Valuation
This table compares RideNow Group and Monotaro”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| RideNow Group | $1.10 billion | 0.19 | -$78.60 million | ($2.80) | -1.95 |
| Monotaro | $1.91 billion | 4.28 | $173.82 million | $0.50 | 32.51 |
Monotaro has higher revenue and earnings than RideNow Group. RideNow Group is trading at a lower price-to-earnings ratio than Monotaro, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares RideNow Group and Monotaro’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| RideNow Group | -9.35% | -223.85% | -4.01% |
| Monotaro | 9.57% | 33.81% | 23.76% |
Summary
Monotaro beats RideNow Group on 8 of the 13 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 Monotaro
MonotaRO Co., Ltd., together with its subsidiaries, operates an online MRO products store in Japan and internationally. The company offers safety protective equipment, work clothes, and safety shoes; logistics, storage, and packing supplies; tapes; safety, disaster prevention, and crime prevention products; safety signs; ship and fishing supplies; office supplies; office furniture/lighting/cleaning supplies; cutting tools and abrasives; measurement and surveying equipment; hand tools/electric and pneumatic tools; sprays, oils, greases, and paints; adhesives and repair materials; welding supplies; and piping and water related components/pumps/pneumatic and hydraulic equipment/hoses. It also provides mechanical parts; control equipment; soldering and anti-static products; architectural hardware, building materials, painting, and interior supplies; air conditioning and electrical equipment; electrical materials; screws, bolts, nails, and materials; automotive supplies; truck supplies; motorcycle supplies; bicycle supplies; scientific research and development supplies; clean room supplies; kitchen equipment and store supplies; agricultural and gardening supplies; and medical and nursing supplies. It serves factories, construction, automobile maintenance, and other industries. The company was formerly known as Sumisho Grainger Co., Ltd. and changed its name to MonotaRO Co., Ltd. in February 2006. The company was incorporated in 2000 and is headquartered in Osaka, Japan. MonotaRO Co., Ltd. operates as a subsidiary of Grainger Global Holdings, Inc.
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