Comparing Revolve Group (NYSE:RVLV) and NaaS Technology (NASDAQ:NAAS)

Revolve Group (NYSE:RVLV) and NaaS Technology (NASDAQ:NAAS) are both small-cap consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, risk, profitability, analyst recommendations, valuation, earnings and dividends.

Profitability

This table compares Revolve Group and NaaS Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Revolve Group	5.54%	13.38%	8.71%
NaaS Technology	N/A	N/A	N/A

Risk and Volatility

Revolve Group has a beta of 1.7, meaning that its share price is 70% more volatile than the S&P 500. Comparatively, NaaS Technology has a beta of 0.66, meaning that its share price is 34% less volatile than the S&P 500.

Valuation and Earnings

This table compares Revolve Group and NaaS Technology”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Revolve Group	$1.23 billion	1.26	$61.71 million	$1.01	21.52
NaaS Technology	$104.00 million	0.54	-$62.77 million	($87.84)	-0.03

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

Analyst Recommendations

This is a summary of current ratings and target prices for Revolve Group and NaaS Technology, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Revolve Group	0	6	7	1	2.64
NaaS Technology	1	0	0	0	1.00

Revolve Group currently has a consensus target price of $29.69, suggesting a potential upside of 36.62%. Given Revolve Group’s stronger consensus rating and higher possible upside, analysts plainly believe Revolve Group is more favorable than NaaS Technology.

Insider & Institutional Ownership

67.6% of Revolve Group shares are held by institutional investors. Comparatively, 1.8% of NaaS Technology shares are held by institutional investors. 42.7% of Revolve Group shares are held by insiders. Comparatively, 18.0% of NaaS Technology 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

Revolve Group beats NaaS Technology on 15 of the 15 factors compared between the two stocks.

About Revolve Group

Revolve Group, Inc. operates as an online fashion retailer for millennial and generation z consumers in the United States and internationally. The company operates in two segments, REVOLVE and FWRD. It operates a platform that connects consumers and global fashion influencers, as well as emerging, established, and owned brands. The company offers apparel, footwear, accessories, beauty, and home products from emerging, established, and owned brands, as well as luxury brands through its websites and mobile apps. The company was formerly known as Advance Holdings, LLC and changed its name to Revolve Group, Inc. in October 2018. Revolve Group, Inc. was founded in 2003 and is headquartered in Cerritos, California.

About NaaS Technology

NaaS Technology Inc. provides electric vehicle (EV) charging services in China. The company offers integrated online EV charging solutions to charging stations, including mobility connectivity services through Kuaidian; SaaS products, such as traffic support and management, marketing, payment, chargers’ management, order management, load management, and membership management. It also provides offline EV charging solutions comprising site selection, hardware procurement, engineering, procurement, and construction, station maintenance, energy storage, and customer support services. In addition, the company offers electricity procurement services to charging stations, as well as other amenities and ancillary services, such as vending machines, massage chairs, and car wash tunnels. It serves charger manufacturers, EV OEMS, and end-users. NaaS Technology Inc. is headquartered in Beijing, China.