RealReal (REAL) and Its Rivals Critical Analysis

RealReal (NASDAQ:REAL) is one of 29 public companies in the “Miscellaneous retail” industry, but how does it contrast to its rivals? We will compare RealReal to similar companies based on the strength of its earnings, institutional ownership, dividends, profitability, valuation, analyst recommendations and risk.

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 company insiders. Comparatively, 20.2% of shares of all “Miscellaneous retail” companies 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.

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	-30.67%	N/A	-26.38%
RealReal Competitors	-22.15%	-42.09%	-4.34%

Earnings and Valuation

This table compares RealReal and its rivals gross 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 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.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for RealReal and its rivals, as reported 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 currently has a consensus target price 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 rivals higher possible upside, analysts plainly believe RealReal has less favorable growth aspects than its rivals.

Volatility and 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 rivals have a beta of 1.09, suggesting that their average stock price is 9% more volatile than the S&P 500.

Summary

RealReal rivals 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.