Contrasting ATRenew (NYSE:RERE) & RideNow Group (NASDAQ:RDNW)

ATRenew (NYSE:RERE) and RideNow Group (NASDAQ:RDNW) are both small-cap consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, analyst recommendations, institutional ownership and earnings.

Profitability

This table compares ATRenew and RideNow Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ATRenew	1.90%	11.48%	7.98%
RideNow Group	-4.28%	-2,628.57%	-1.85%

Risk & Volatility

ATRenew has a beta of 0.31, suggesting that its share price is 69% less volatile than the S&P 500. Comparatively, RideNow Group has a beta of 1.18, suggesting that its share price is 18% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for ATRenew and RideNow Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ATRenew	0	1	1	0	2.50
RideNow Group	1	2	0	0	1.67

ATRenew presently has a consensus target price of $5.50, suggesting a potential upside of 22.09%. RideNow Group has a consensus target price of $7.50, suggesting a potential upside of 15.21%. Given ATRenew’s stronger consensus rating and higher probable upside, equities research analysts plainly believe ATRenew is more favorable than RideNow Group.

Valuation and Earnings

This table compares ATRenew and RideNow Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ATRenew	$3.01 billion	0.33	$48.09 million	$0.25	18.02
RideNow Group	$1.08 billion	0.23	-$52.40 million	($1.24)	-5.25

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

Institutional and Insider Ownership

19.3% of ATRenew shares are held by institutional investors. Comparatively, 66.1% of RideNow Group shares are held by institutional investors. 10.7% of ATRenew shares are held by insiders. Comparatively, 55.3% of RideNow Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

ATRenew beats RideNow Group on 11 of the 14 factors compared between the two stocks.

About ATRenew

ATRenew Inc., through its subsidiaries, operates pre-owned consumer electronics transactions and services platform in the People's Republic of China. It primarily sells mobile phones, laptops, tablets, drones, digital cameras; and vintage bags, watches, liquor, gold, and various household goods through its online platforms and offline stores, as well as provides services to third-party merchants to sell the products through its platforms. The company was formerly known as AiHuiShou International Co. Ltd. and changed its name to ATRenew Inc. November 2021. The company was incorporated in 2011 and is headquartered in Shanghai, the People's Republic of China.

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.