Murphy USA (NYSE:MUSA) & Revolve Group (NYSE:RVLV) Financial Survey

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

Institutional and Insider 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 insiders. Comparatively, 9.0% of Murphy USA shares are held by 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.

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.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Revolve Group and Murphy USA, as provided by MarketBeat.

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

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%

Valuation and Earnings

This table compares Revolve Group and Murphy USA”s gross 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.

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.