Comparing RealReal (REAL) and 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 peers? We will compare RealReal to similar companies based on the strength of its valuation, earnings, risk, dividends, analyst recommendations, institutional ownership and profitability.

Institutional & Insider 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, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares RealReal and its peers’ 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	-23.16%	-42.80%	-4.42%

Valuation and Earnings

This table compares RealReal and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
RealReal	$549.30 million	-$168.47 million	-2.34
RealReal Competitors	$1.93 billion	$32.37 million	10.80

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

Risk & Volatility

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

Analyst Ratings

This is a breakdown of recent ratings and target prices for RealReal and its peers, 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 price target of $3.60, indicating a potential downside of 7.93%. As a group, “Miscellaneous retail” companies have a potential downside of 0.03%. Given RealReal’s peers higher possible upside, analysts plainly believe RealReal has less favorable growth aspects than its peers.

Summary

RealReal peers beat RealReal on 8 of the 12 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.