LY (OTCMKTS:YAHOY – Get Free Report) and RealReal (NASDAQ:REAL – Get Free Report) are both consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, earnings, valuation, dividends, institutional ownership, profitability and risk.
Profitability
This table compares LY and RealReal’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| LY | 6.24% | 5.46% | 1.81% |
| RealReal | -10.82% | N/A | -17.99% |
Analyst Recommendations
This is a summary of recent ratings and price targets for LY and RealReal, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| LY | 0 | 2 | 0 | 0 | 2.00 |
| RealReal | 1 | 2 | 6 | 0 | 2.56 |
Earnings and Valuation
This table compares LY and RealReal”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| LY | $13.53 billion | 1.72 | $1.28 billion | $0.39 | 17.31 |
| RealReal | $692.84 million | 1.68 | -$41.80 million | ($1.12) | -8.53 |
LY has higher revenue and earnings than RealReal. RealReal is trading at a lower price-to-earnings ratio than LY, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
LY has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500. Comparatively, RealReal has a beta of 2.71, indicating that its share price is 171% more volatile than the S&P 500.
Institutional and Insider Ownership
64.7% of RealReal shares are held by institutional investors. 2.7% of RealReal shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Summary
LY beats RealReal on 8 of the 14 factors compared between the two stocks.
About LY
LY Corporation engages in the online advertising and e-commerce businesses in Japan. The company provides LINE, a communication app; and Yahoo! JAPAN, an internet service that offers search, news, weather, shopping, auction, and other services. It also offers reuse, membership, and payment-related services. The company was formerly known as Z Holdings Corporation and changed its name to LY Corporation in October 2023. LY Corporation was founded in 1996 and is headquartered in Chiyoda, Japan. LY Corporation operates as a subsidiary of A Holdings Corporation.
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.
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