Insight Enterprises (NASDAQ:NSIT) and Revolve Group (NYSE:RVLV) are both mid-cap retail/wholesale companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.
Profitability
This table compares Insight Enterprises and Revolve Group's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Insight Enterprises | 1.94% | 17.84% | 5.20% |
Revolve Group | 7.87% | 31.18% | 17.52% |
Insider and Institutional Ownership
32.5% of Revolve Group shares are held by institutional investors. 2.1% of Insight Enterprises shares are held by company insiders. Comparatively, 58.7% of Revolve Group shares are held 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
Insight Enterprises has a beta of 1.81, suggesting that its stock price is 81% more volatile than the S&P 500. Comparatively, Revolve Group has a beta of 2.83, suggesting that its stock price is 183% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings and target prices for Insight Enterprises and Revolve Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Insight Enterprises | 0 | 0 | 4 | 0 | 3.00 |
Revolve Group | 0 | 9 | 9 | 1 | 2.58 |
Insight Enterprises presently has a consensus target price of $88.1667, suggesting a potential upside of 5.48%. Revolve Group has a consensus target price of $32.4444, suggesting a potential downside of 29.62%. Given Insight Enterprises' stronger consensus rating and higher possible upside, equities research analysts clearly believe Insight Enterprises is more favorable than Revolve Group.
Valuation & Earnings
This table compares Insight Enterprises and Revolve Group's top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Insight Enterprises | $7.73 billion | 0.38 | $159.41 million | $5.42 | 15.42 |
Revolve Group | $600.99 million | 5.39 | $35.67 million | $0.62 | 74.35 |
Insight Enterprises has higher revenue and earnings than Revolve Group. Insight Enterprises 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 Insight Enterprises on 10 of the 15 factors compared between the two stocks.