Farfetch vs Revolve Which Performs Better?

Farfetch and Revolve are two prominent e-commerce platforms in the fashion industry, each offering unique investment opportunities for potential investors. Farfetch, a luxury online retailer, has seen significant growth in recent years, benefiting from its strong partnerships with high-end brands. On the other hand, Revolve, a trendy apparel and accessories retailer, has also experienced substantial growth, particularly among younger consumers. Both companies face competitive challenges in the ever-evolving retail landscape, making their stocks an intriguing option for investors seeking exposure to the fashion industry.

Farfetch or Revolve?

When comparing Farfetch 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 Farfetch 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. Farfetch 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. Farfetch 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 Farfetch P/E ratio at 0.00 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. Farfetch P/B ratio is 0.00 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, Farfetch has seen a 5-year revenue growth of 0.00%, while Revolve's is 0.99%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Farfetch's ROE at 85.87% and Revolve's ROE at 10.17%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $0.00 for Farfetch and $36.42 for Revolve. Over the past year, Farfetch's prices ranged from $0.00 to $6.76, with a yearly change of 6758400.00%. 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.