Warby Parker (NYSE:WRBY) and Revolve Group (NYSE:RVLV) Head-To-Head Contrast

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

Analyst Ratings

This is a breakdown of current ratings and price targets for Revolve Group and Warby Parker, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Revolve Group	0	6	8	0	2.57
Warby Parker	0	4	6	0	2.60

Revolve Group presently has a consensus target price of $29.85, indicating a potential upside of 33.94%. Warby Parker has a consensus target price of $30.00, indicating a potential upside of 15.77%. Given Revolve Group’s higher probable upside, equities analysts clearly believe Revolve Group is more favorable than Warby Parker.

Insider and Institutional Ownership

67.6% of Revolve Group shares are owned by institutional investors. Comparatively, 93.2% of Warby Parker shares are owned by institutional investors. 42.7% of Revolve Group shares are owned by company insiders. Comparatively, 16.8% of Warby Parker shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Revolve Group and Warby Parker”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Revolve Group	$1.31 billion	1.21	$61.71 million	$1.01	22.06
Warby Parker	$871.91 million	3.22	$1.64 million	$0.07	370.19

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

Risk and Volatility

Revolve Group has a beta of 1.7, suggesting that its share price is 70% more volatile than the S&P 500. Comparatively, Warby Parker has a beta of 1.89, suggesting that its share price is 89% more volatile than the S&P 500.

Profitability

This table compares Revolve Group and Warby Parker’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%
Warby Parker	0.85%	3.36%	1.72%

Summary

Revolve Group beats Warby Parker on 9 of the 14 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 Warby Parker

Warby Parker Inc. provides eyewear products in the United States and Canada. The company offers eyeglasses, sunglasses, light-responsive lenses, blue-light-filtering lenses, non-prescription lenses, and contact lenses. It also provides accessories, such as cases, lenses kit with anti-fog spray, pouches, and anti-fog lens spray through its retail stores, website, and mobile apps. In addition, the company offers eye exams and vision tests. Warby Parker Inc. was incorporated in 2009 and is headquartered in New York, New York.