Head-To-Head Survey: RealReal (REAL) versus Its Competitors

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

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	-22.15%	-42.09%	-4.34%

Valuation & Earnings

This table compares RealReal and its peers gross 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	$1.94 billion	$32.37 million	10.81

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.

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 endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and price targets for RealReal and its peers, as provided 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 clearly believe RealReal has less favorable growth aspects than its peers.

Risk & 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 peers have a beta of 1.09, indicating that their average stock price is 9% more volatile than the S&P 500.

Summary

RealReal peers 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.