Financial Review: RealReal (REAL) vs. Its Peers

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

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%

Institutional & Insider 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 endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

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

Analyst Recommendations

This is a breakdown of current ratings and target prices for RealReal and its competitors, 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, indicating 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.

Earnings & Valuation

This table compares RealReal and its competitors 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.

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.