Critical Survey: RealReal (REAL) versus Its Rivals

RealReal (NASDAQ:REALGet Free Report) is one of 29 public 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 analyst recommendations, profitability, earnings, risk, dividends, valuation and institutional ownership.

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%

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, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations and price targets 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 120 540 460 6 2.31

RealReal currently has a consensus price target of $3.60, suggesting a potential upside of 0.00%. As a group, “Miscellaneous retail” companies have a potential upside of 1.66%. Given RealReal’s peers higher probable upside, analysts clearly believe RealReal has less favorable growth aspects than its peers.

Earnings & 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 -2.16
RealReal Competitors $2.27 billion $36.60 million 9.75

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.

Volatility and Risk

RealReal has a beta of 2.99, meaning that its share price is 199% more volatile than the S&P 500. Comparatively, RealReal’s peers have a beta of 1.07, meaning that their average share price is 7% more volatile than the S&P 500.

Summary

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

RealReal Company Profile

(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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