Comparing RealReal (REAL) & Its Rivals

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

Insider & Institutional Ownership

64.7% of RealReal shares are held by institutional investors. Comparatively, 39.2% of shares of all “Miscellaneous retail” companies are held by institutional investors. 9.3% of RealReal shares are held by insiders. Comparatively, 20.2% of shares of all “Miscellaneous retail” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Volatility and Risk

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

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 & Valuation

This table compares RealReal and its rivals 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 Ratings

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 presently 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 clearly believe RealReal has less favorable growth aspects than its rivals.

Summary

RealReal rivals beat RealReal on 9 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.