ASOS vs Revolve Which Is a Better Investment?

ASOS and Revolve are two popular online retailers that offer a wide range of trendy clothing, accessories, and footwear for fashion-conscious consumers. Both companies have gained popularity for their diverse inventory of stylish clothing from various brands and designers. While ASOS caters to a more budget-conscious audience with a focus on fast fashion, Revolve offers higher-end designer labels and luxury items. Investors may want to compare the performance and growth potential of ASOS and Revolve stocks to make informed decisions.

ASOS or Revolve?

When comparing ASOS and Revolve, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between ASOS and Revolve.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. ASOS has a dividend yield of -%, while Revolve has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. ASOS reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Revolve reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with ASOS P/E ratio at -1.94 and Revolve's P/E ratio at 64.38. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. ASOS P/B ratio is 0.93 while Revolve's P/B ratio is 6.24.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, ASOS has seen a 5-year revenue growth of 0.17%, while Revolve's is 0.99%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with ASOS's ROE at -43.49% and Revolve's ROE at 10.17%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $5.00 for ASOS and $36.42 for Revolve. Over the past year, ASOS's prices ranged from $4.11 to $5.89, with a yearly change of 43.31%. Revolve's prices fluctuated between $13.96 and $39.03, with a yearly change of 179.58%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.