Critical Analysis: RealReal (REAL) vs. The Competition

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

Risk and Volatility

RealReal has a beta of 2.84, suggesting that its share price is 184% more volatile than the S&P 500. Comparatively, RealReal’s peers have a beta of 1.07, suggesting that their average share price is 7% more volatile than the S&P 500.

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

Analyst Ratings

This is a summary of recent ratings and price targets for RealReal and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
RealReal 0 3 2 0 2.40
RealReal Competitors 120 540 460 6 2.31

RealReal currently has a consensus price target of $3.60, suggesting a potential downside of 7.46%. As a group, “Miscellaneous retail” companies have a potential upside of 1.20%. Given RealReal’s peers higher possible upside, analysts plainly believe RealReal has less favorable growth aspects than its peers.

Earnings and Valuation

This table compares RealReal and its peers gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
RealReal $549.30 million -$168.47 million -2.33
RealReal Competitors $1.93 billion $36.60 million 9.64

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.

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%

Summary

RealReal peers beat RealReal on 9 of the 13 factors compared.

About RealReal

(Get Free Report)

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.

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