Revolve vs ASOS Which Is More Promising?

Revolve and ASOS are two popular online retailers known for their vast selection of trendy and affordable fashion items. Both companies offer a wide range of clothing, accessories, and beauty products from a variety of brands. However, there are some key differences between the two stocks. Revolve tends to focus more on high-end designer brands while ASOS caters to a broader audience with a mix of both designer and fast fashion brands. Investors may need to consider factors such as brand positioning, target market, and growth potential when deciding between investing in Revolve or ASOS stocks.

Revolve or ASOS?

When comparing Revolve and ASOS, 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 Revolve and ASOS.

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. Revolve has a dividend yield of -%, while ASOS has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Revolve reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, ASOS 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 Revolve P/E ratio at 64.38 and ASOS's P/E ratio at -1.95. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Revolve P/B ratio is 6.24 while ASOS's P/B ratio is 0.93.

Growth Investors:

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

Retail Investors:

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