Critical Review: Beyond (NYSE:BYON) vs. Revolve Group (NYSE:RVLV)

Beyond (NYSE:BYON) and Revolve Group (NYSE:RVLV) are both retail/wholesale companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, earnings, analyst recommendations, valuation and dividends.

Earnings & Valuation

This table compares Beyond and Revolve Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Beyond	$1.48 billion	0.19	-$307.84 million	($7.39)	-0.84
Revolve Group	$1.07 billion	2.20	$28.15 million	$0.56	59.55

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

Institutional and Insider Ownership

76.3% of Beyond shares are held by institutional investors. Comparatively, 67.6% of Revolve Group shares are held by institutional investors. 1.2% of Beyond shares are held by company insiders. Comparatively, 46.6% of Revolve Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Beyond	-22.82%	-69.32%	-35.45%
Revolve Group	3.72%	10.17%	6.29%

Analyst Recommendations

This is a summary of current ratings for Beyond and Revolve Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Beyond	1	3	4	0	2.38
Revolve Group	1	8	7	0	2.38

Beyond presently has a consensus price target of $16.50, indicating a potential upside of 166.99%. Revolve Group has a consensus price target of $26.19, indicating a potential downside of 21.48%. Given Beyond’s higher possible upside, equities research analysts clearly believe Beyond is more favorable than Revolve Group.

Risk & Volatility

Beyond has a beta of 3.7, meaning that its stock price is 270% more volatile than the S&P 500. Comparatively, Revolve Group has a beta of 2.05, meaning that its stock price is 105% more volatile than the S&P 500.

Summary

Revolve Group beats Beyond on 9 of the 13 factors compared between the two stocks.

About Beyond

Beyond, Inc. operates as an online retailer of furniture and home furnishings products in the United States and Canada. The company offers furniture, bedding and bath, patio and outdoor gear, area rugs, tabletop and cookware, décor, storage and organization, small appliances, home improvement, and other products under the Bed Bath & Beyond brand. The company provides its products and services through its e-commerce platform accessible through its mobile application, which includes bedbathandbeyond.com, bedbathandbeyond.ca, and overstockgovernment.com. It also offers businesses advertising products or services on its website; Marketplace, a service that allows its partners to sell their products through third party sites; product sales to international customers using third party logistics providers; and Supplier Oasis, a singular integration point that enables partners to manage their products, inventory, and sales channels, as well as access multi-channel fulfillment services through its distribution network. The company was formerly known as Overstock.com, Inc. and changed its name to Beyond, Inc. in November 2023. Beyond, Inc. was founded in 1997 and is headquartered in Midvale, Utah.

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.