Critical Contrast: RealReal (REAL) versus Its Peers

RealReal (NASDAQ:REAL) is one of 142 publicly-traded companies in the “Broadline Retail” industry, but how does it weigh in compared to its rivals? We will compare RealReal to similar companies based on the strength of its earnings, dividends, risk, valuation, analyst recommendations, profitability and institutional ownership.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for RealReal and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RealReal	1	2	6	0	2.56
RealReal Competitors	1400	5383	10832	308	2.56

RealReal currently has a consensus price target of $17.50, suggesting a potential upside of 56.53%. As a group, “Broadline Retail” companies have a potential upside of 18.63%. Given RealReal’s higher possible upside, equities research analysts plainly believe RealReal is more favorable than its rivals.

Profitability

This table compares RealReal and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RealReal	-10.82%	N/A	-17.99%
RealReal Competitors	-3.45%	-38.27%	-2.60%

Valuation & Earnings

This table compares RealReal and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
RealReal	$692.84 million	-$41.80 million	-9.98
RealReal Competitors	$24.25 billion	$1.71 billion	15.57

RealReal’s rivals have higher revenue and earnings than RealReal. RealReal is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Volatility and Risk

RealReal has a beta of 2.81, suggesting that its stock price is 181% more volatile than the S&P 500. Comparatively, RealReal’s rivals have a beta of 1.70, suggesting that their average stock price is 70% more volatile than the S&P 500.

Insider and Institutional Ownership

64.7% of RealReal shares are owned by institutional investors. Comparatively, 44.6% of shares of all “Broadline Retail” companies are owned by institutional investors. 2.7% of RealReal shares are owned by insiders. Comparatively, 23.6% of shares of all “Broadline Retail” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

RealReal rivals beat RealReal on 8 of the 13 factors compared.

RealReal Company Profile

The RealReal, Inc. operates an online marketplace for resale luxury goods in the United State. The company offers various product categories, including women's fashion, men's fashion, jewelry, and watches. It primarily sells products through online marketplace and retail stores. The company was incorporated in 2011 and is headquartered in San Francisco, California.