Contrasting Savers Value Village (NYSE:SVV) and Revolve Group (NYSE:RVLV)

Savers Value Village (NYSE:SVV) and Revolve Group (NYSE:RVLV) are both small-cap consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, earnings, institutional ownership, risk, analyst recommendations and valuation.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Savers Value Village and Revolve Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Savers Value Village	0	4	4	1	2.67
Revolve Group	0	7	8	0	2.53

Savers Value Village presently has a consensus price target of $13.67, suggesting a potential upside of 69.04%. Revolve Group has a consensus price target of $25.92, suggesting a potential upside of 21.88%. Given Savers Value Village’s stronger consensus rating and higher probable upside, research analysts clearly believe Savers Value Village is more favorable than Revolve Group.

Institutional and Insider Ownership

98.8% of Savers Value Village shares are owned by institutional investors. Comparatively, 67.6% of Revolve Group shares are owned by institutional investors. 3.1% of Savers Value Village shares are owned by company insiders. Comparatively, 43.8% of Revolve Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

Savers Value Village has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500. Comparatively, Revolve Group has a beta of 1.93, suggesting that its share price is 93% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Savers Value Village	-0.11%	9.18%	2.01%
Revolve Group	4.64%	11.26%	7.30%

Valuation and Earnings

This table compares Savers Value Village and Revolve Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Savers Value Village	$1.54 billion	0.82	$29.03 million	($0.01)	-808.50
Revolve Group	$1.13 billion	1.34	$49.56 million	$0.76	27.99

Revolve Group has lower revenue, but higher earnings than Savers Value Village. Savers Value Village 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

Revolve Group beats Savers Value Village on 10 of the 15 factors compared between the two stocks.

About Savers Value Village

Savers Value Village, Inc. sells second-hand merchandise in retail stores in the United States, Canada, and Australia. It operates stores under the Savers, Value Village, Value Village Boutique, Village des Valeurs, Unique, and 2nd Avenue brands. The company purchases secondhand textiles, including clothing, bedding, and bath items; shoes; accessories; housewares; books; and other goods from non-profit partners and then processes, selects, prices, merchandises, and sells them in its stores. It serves retail and wholesale customers. The company was formerly known as S-Evergreen Holding LLC and changed its name to Savers Value Village, Inc. in January 2022. Savers Value Village, Inc. was founded in 1954 and is based in Bellevue, Washington.

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.