Analyzing J-Long Group (NASDAQ:JL) & Revolve Group (NYSE:RVLV)

Revolve Group (NYSE:RVLV) and J-Long Group (NASDAQ:JL) are both small-cap consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, analyst recommendations, earnings, valuation and profitability.

Profitability

This table compares Revolve Group and J-Long Group’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%
J-Long Group	N/A	N/A	N/A

Valuation and Earnings

This table compares Revolve Group and J-Long Group”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	1.31	$49.56 million	$0.76	27.20
J-Long Group	$39.08 million	0.37	$2.59 million	N/A	N/A

Revolve Group has higher revenue and earnings than J-Long Group.

Risk & Volatility

Revolve Group has a beta of 1.93, meaning that its stock price is 93% more volatile than the S&P 500. Comparatively, J-Long Group has a beta of -0.45, meaning that its stock price is 145% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Revolve Group and J-Long Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Revolve Group	0	7	8	0	2.53
J-Long Group	1	0	0	0	1.00

Revolve Group currently has a consensus price target of $25.92, suggesting a potential upside of 25.38%. Given Revolve Group’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Revolve Group is more favorable than J-Long Group.

Insider and Institutional Ownership

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

Summary

Revolve Group beats J-Long Group on 12 of the 12 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 J-Long Group

J-Long Group Limited distributes reflective and non-reflective garment trims in Asia, Hong Kong, the People's Republic of China, and internationally. The company offers heat transfers, fabrics, woven labels and tapes, sewing badges, piping, zipper pullers, and drawcords. It also sells through online. The company was founded in 1985 and is based in Tsuen Wan, Hong Kong.