Head-To-Head Survey: Real Brands (OTCMKTS:RLBD) & Traeger (NYSE:COOK)

Traeger (NYSE:COOK) and Real Brands (OTCMKTS:RLBD) are both small-cap consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, profitability, institutional ownership, earnings, valuation, dividends and analyst recommendations.

Insider and Institutional Ownership

46.8% of Traeger shares are owned by institutional investors. 16.2% of Traeger shares are owned by insiders. Comparatively, 40.2% of Real Brands shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

Traeger has a beta of 1.95, suggesting that its stock price is 95% more volatile than the S&P 500. Comparatively, Real Brands has a beta of 0.73, suggesting that its stock price is 27% less volatile than the S&P 500.

Profitability

This table compares Traeger and Real Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Traeger	-21.84%	-13.76%	-3.95%
Real Brands	N/A	N/A	N/A

Valuation & Earnings

This table compares Traeger and Real Brands”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Traeger	$559.52 million	0.34	-$115.18 million	($41.92)	-1.64
Real Brands	$60,000.00	0.00	-$1.33 million	N/A	N/A

Real Brands has lower revenue, but higher earnings than Traeger.

Analyst Recommendations

This is a summary of recent ratings and price targets for Traeger and Real Brands, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Traeger	1	5	1	0	2.00
Real Brands	0	0	0	0	0.00

Traeger currently has a consensus price target of $50.08, suggesting a potential downside of 26.94%. Given Real Brands’ higher probable upside, analysts clearly believe Real Brands is more favorable than Traeger.

Summary

Real Brands beats Traeger on 6 of the 11 factors compared between the two stocks.

About Traeger

Traeger, Inc., together with its subsidiaries, designs, sources, sells, and supports wood pellet fueled barbecue grills for retailers, distributors, and direct to consumers in the United States. Its wood pellet grills are internet of things devices that allow owners to program, monitor, and control their grill through its Traeger app. The company also produces a library of digital content, including instructional recipes and videos that demonstrate tips, tricks, and cooking techniques that empower Traeger owners to progress their cooking skills; and short- and long-form branded content highlighting stories, community members, and lifestyle content from the Traegerhood. In addition, it provides wood pellets that are used to fire the grills; rubs, spices, and sauces; accessories, such as pop-and-lock accessory rail covers, drip trays, bucket liners, storage bins, and shelves; tools to aid in meal prep, cooking, and cleanup, including pellet storage systems, cleaning solutions, barbecue tools, and MEATER smart thermometer; replacement parts; and apparel and merchandise, including t-shirts, hooded sweatshirts, and baseball hats. Traeger, Inc. was founded in 1987 and is headquartered in Salt Lake City, Utah.

About Real Brands

Real Brands, Inc. operates in the hemp-derived cannabinol (CBD) market. It engages in the extraction of CBD oil/isolate; wholesale of CBD oils and isolate; and production and sale of hemp-derived CBD products, celebrity brands, and white label products. The company was founded in 2011 and is headquartered in North Providence, Rhode Island.