Comparing RealReal (REAL) & Its Peers

RealReal (NASDAQ:REAL) is one of 29 publicly-traded companies in the “Miscellaneous retail” industry, but how does it weigh in compared to its competitors? We will compare RealReal to related companies based on the strength of its institutional ownership, profitability, valuation, dividends, risk, analyst recommendations and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
RealReal	-30.67%	N/A	-26.38%
RealReal Competitors	-22.15%	-42.09%	-4.34%

Volatility & Risk

RealReal has a beta of 2.84, suggesting that its stock price is 184% more volatile than the S&P 500. Comparatively, RealReal’s competitors have a beta of 1.09, suggesting that their average stock price is 9% more volatile than the S&P 500.

Earnings & Valuation

This table compares RealReal and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
RealReal	$549.30 million	-$168.47 million	-2.34
RealReal Competitors	$1.94 billion	$32.37 million	10.81

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

Insider & Institutional Ownership

64.7% of RealReal shares are owned by institutional investors. Comparatively, 39.2% of shares of all “Miscellaneous retail” companies are owned by institutional investors. 9.3% of RealReal shares are owned by insiders. Comparatively, 20.2% of shares of all “Miscellaneous retail” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and recommmendations for RealReal and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RealReal	0	3	2	0	2.40
RealReal Competitors	120	539	459	6	2.31

RealReal presently has a consensus price target of $3.60, suggesting a potential downside of 7.93%. As a group, “Miscellaneous retail” companies have a potential downside of 0.03%. Given RealReal’s competitors higher probable upside, analysts plainly believe RealReal has less favorable growth aspects than its competitors.

Summary

RealReal competitors beat RealReal on 9 of the 13 factors compared.

About RealReal

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.