Analyzing Talon International (OTCMKTS:TALN) and Revolve Group (NYSE:RVLV)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Talon International	N/A	N/A	N/A
Revolve Group	4.64%	11.26%	7.30%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Talon International and Revolve Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Talon International	0	0	0	0	0.00
Revolve Group	0	7	9	0	2.56

Revolve Group has a consensus target price of $26.21, indicating a potential upside of 11.87%. Given Revolve Group’s stronger consensus rating and higher probable upside, analysts clearly believe Revolve Group is more favorable than Talon International.

Institutional & Insider Ownership

67.6% of Revolve Group shares are owned by institutional investors. 20.3% of Talon International shares are owned by company insiders. Comparatively, 43.8% of Revolve Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Talon International and Revolve Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Talon International	$32.11 million	0.17	$220,000.00	N/A	N/A
Revolve Group	$1.13 billion	1.48	$49.56 million	$0.76	30.83

Revolve Group has higher revenue and earnings than Talon International.

Volatility and Risk

Talon International has a beta of -0.7, suggesting that its stock price is 170% less volatile than the S&P 500. Comparatively, Revolve Group has a beta of 1.93, suggesting that its stock price is 93% more volatile than the S&P 500.

Summary

Revolve Group beats Talon International on 12 of the 12 factors compared between the two stocks.

About Talon International

Talon International, Inc. manufactures and distributes apparel components and accessories to manufacturers of fashion apparel, specialty retailers, and mass merchandisers. The company offers a line of metal, coil, and plastic zippers under the Talon brand name; apparel trim components, including tags, labels, buttons, rivets, leather patches, woven labels, heat transfer seals, tapes, ribbons, printed marketing material, polybasic, packing cartons, and hangers; Flex-It films, adhesive films, overlay films, seam sealing tapes; metal fasteners; stretch waistbands, shirt collars, and inner pocketing panels under the Tekfit brand, as well as packaging and other items; and specialty stretch technology for interlinings. It also provides outsourced trim design, sourcing, and management services, as well as supplies custom branded trim components. The company sells its products through its own sales force in the United States, Hong Kong, China, India, Indonesia, Vietnam, and Bangladesh, as well as through sales representatives in Europe. The company was formerly known as Tag-It Pacific, Inc. and changed its name to Talon International, Inc. in July 2007. Talon International, Inc. was founded in 1980 and is headquartered in Woodland Hills, California.

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.