Analyzing Burlington Stores (NYSE:BURL) and RideNow Group (NASDAQ:RDNW)

RideNow Group (NASDAQ:RDNW) and Burlington Stores (NYSE:BURL) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, risk, profitability, earnings and analyst recommendations.

Volatility and Risk

RideNow Group has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500. Comparatively, Burlington Stores has a beta of 1.42, meaning that its share price is 42% more volatile than the S&P 500.

Institutional and Insider Ownership

66.1% of RideNow Group shares are owned by institutional investors. 55.3% of RideNow Group shares are owned by company insiders. Comparatively, 1.3% of Burlington Stores shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings for RideNow Group and Burlington Stores, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RideNow Group	1	2	0	0	1.67
Burlington Stores	0	6	14	0	2.70

RideNow Group currently has a consensus target price of $8.50, indicating a potential upside of 54.55%. Burlington Stores has a consensus target price of $370.75, indicating a potential upside of 56.10%. Given Burlington Stores’ stronger consensus rating and higher probable upside, analysts plainly believe Burlington Stores is more favorable than RideNow Group.

Earnings & Valuation

This table compares RideNow Group and Burlington Stores”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RideNow Group	$1.08 billion	0.20	-$52.40 million	($0.23)	-23.91
Burlington Stores	$11.57 billion	1.29	$610.15 million	$11.14	21.32

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

Profitability

This table compares RideNow Group and Burlington Stores’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RideNow Group	-0.76%	-2,628.57%	-1.17%
Burlington Stores	5.85%	41.72%	7.61%

Summary

Burlington Stores beats RideNow Group on 12 of the 14 factors compared between the two stocks.

About RideNow Group

RumbleOn, Inc. primarily operates as a powersports retailer in the United States. It operates in two segments, Powersports and Vehicle Transportation Services. The Powersports segment provides new and pre-owned motorcycles, all-terrain vehicles, utility terrain or side-by-side vehicles, personal watercraft, snowmobiles, and other powersports products. It also offers parts, apparel, accessories, finance and insurance products and services, and aftermarket products, as well as repair and maintenance services. The Vehicle Transportation Services segment provides asset-light transportation brokerage services facilitating automobile transportation. The company was formerly known as Smart Server, Inc. and changed its name to RumbleOn, Inc. in February 2017. The company was incorporated in 2013 and is based in Irving, Texas.

About Burlington Stores

Burlington Stores, Inc. operates as a retailer of branded merchandise in the United States. The company provides fashion-focused merchandise, including women's ready-to-wear apparel, menswear, youth apparel, footwear, accessories, toys, gifts, and coats, as well as baby, home, and beauty products. It operates stores under the Burlington Stores, and Cohoes Fashions brand names in Washington D.C. and Puerto Rico. Burlington Stores, Inc. was founded in 1972 and is headquartered in Burlington, New Jersey.