Chanson International (NASDAQ:CHSN) vs. RealReal (NASDAQ:REAL) Financial Contrast

RealReal (NASDAQ:REAL) and Chanson International (NASDAQ:CHSN) are both small-cap consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Analyst Ratings

This is a summary of recent recommendations for RealReal and Chanson International, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RealReal	1	2	5	1	2.67
Chanson International	1	0	0	0	1.00

RealReal currently has a consensus target price of $17.94, suggesting a potential upside of 57.07%. Given RealReal’s stronger consensus rating and higher probable upside, research analysts plainly believe RealReal is more favorable than Chanson International.

Profitability

This table compares RealReal and Chanson International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RealReal	-10.78%	N/A	-18.58%
Chanson International	N/A	N/A	N/A

Volatility & Risk

RealReal has a beta of 2.65, indicating that its share price is 165% more volatile than the S&P 500. Comparatively, Chanson International has a beta of -2.55, indicating that its share price is 355% less volatile than the S&P 500.

Earnings and Valuation

This table compares RealReal and Chanson International”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RealReal	$600.48 million	2.22	-$134.20 million	($1.38)	-8.28
Chanson International	$18.23 million	4.33	$760,000.00	N/A	N/A

Chanson International has lower revenue, but higher earnings than RealReal.

Insider and Institutional Ownership

64.7% of RealReal shares are owned by institutional investors. Comparatively, 2.8% of Chanson International shares are owned by institutional investors. 9.0% of RealReal shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

RealReal beats Chanson International on 8 of the 12 factors compared between the two stocks.

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.

About Chanson International

Chanson International Holding manufactures and sells a range of bakery products, seasonal products, and beverage products for individual and corporate customers. It offers packaged bakery products, such as cakes, bread, sweets, and snacks; birthday cakes; made-in-store pastries; mooncakes and zongzi products; and other products, including sandwiches, salads, toasts, croissants, soups, and desserts, as well as beverages and juice products. The company sells its products through a chain of bakeries, as well as digital platforms and third-party online food ordering platforms. It also offers eat-in services in its stores. The company sells its bakery and other products under the George Chanson, Patisserie Chanson, and Chanson brand names. It operates in Xinjiang in the People's Republic of China; and New York City, the United States. The company was formerly known as formerly known as RON Holding Limited and changed its name to Chanson International Holding in December 2020. The company was incorporated in 2019 and is headquartered in Urumqi, China. Chanson International Holding operates as a subsidiary of Danton Global Limited.