Critical Contrast: Columbia Sportswear (NASDAQ:COLM) & Revolve Group (NYSE:RVLV)

Revolve Group (NYSE:RVLV) and Columbia Sportswear (NASDAQ:COLM) are both consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, analyst recommendations, earnings, valuation, profitability, dividends and institutional ownership.

Volatility and Risk

Revolve Group has a beta of 1.84, indicating that its share price is 84% more volatile than the S&P 500. Comparatively, Columbia Sportswear has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500.

Institutional and Insider Ownership

67.6% of Revolve Group shares are owned by institutional investors. Comparatively, 47.8% of Columbia Sportswear shares are owned by institutional investors. 46.6% of Revolve Group shares are owned by insiders. Comparatively, 48.3% of Columbia Sportswear shares are owned by 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 Revolve Group and Columbia Sportswear’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Revolve Group	4.64%	11.26%	7.30%
Columbia Sportswear	5.45%	12.45%	7.50%

Analyst Recommendations

This is a breakdown of recent recommendations for Revolve Group and Columbia Sportswear, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Revolve Group	0	7	9	0	2.56
Columbia Sportswear	1	6	2	0	2.11

Revolve Group currently has a consensus price target of $26.21, suggesting a potential downside of 1.76%. Columbia Sportswear has a consensus price target of $55.80, suggesting a potential upside of 0.56%. Given Columbia Sportswear’s higher possible upside, analysts clearly believe Columbia Sportswear is more favorable than Revolve Group.

Valuation and Earnings

This table compares Revolve Group and Columbia Sportswear”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	$1.13 billion	1.68	$49.56 million	$0.76	35.11
Columbia Sportswear	$3.37 billion	0.89	$223.27 million	$3.31	16.76

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

Summary

Columbia Sportswear beats Revolve Group on 8 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 Columbia Sportswear

Columbia Sportswear Company, together with its subsidiaries, designs, develops, markets, and distributes outdoor, active, and everyday lifestyle apparel, footwear, accessories, and equipment in the United States, Latin America, the Asia Pacific, Europe, the Middle East, Africa, and Canada. The company provides apparel, accessories, and equipment for hiking, trail running, snow, fishing, hunting, mountaineering, climbing, skiing and snowboarding, trail, and outdoor activities. It offers footwear products that include lightweight hiking boot; trail running shoes; rugged cold weather boots; sandals and shoes for use in water activities; and footwear for lifestyle wear. In addition, it owned network of branded and outlet retail stores; brand-specific e-commerce sites; and concession or franchise-based arrangements with third parties at branded outlet and shop-in-shop retail locations, as well as through independently operated specialty outdoor and sporting goods stores, sporting goods chains, department store chains, internet retailers, and international distributors. The company sells its products under the Columbia, Mountain Hard Wear, SOREL, and prAna brand names. Columbia Sportswear Company was founded in 1938 and is headquartered in Portland, Oregon.