Analyzing RealReal (REAL) & Its Competitors

RealReal (NASDAQ:REALGet Free Report) 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 businesses based on the strength of its analyst recommendations, profitability, earnings, risk, dividends, valuation and institutional ownership.

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 insiders. Comparatively, 20.2% of shares of all “Miscellaneous retail” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

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 -23.16% -42.80% -4.42%

Risk and Volatility

RealReal has a beta of 2.98, meaning that its share price is 198% more volatile than the S&P 500. Comparatively, RealReal’s competitors have a beta of 1.14, meaning that their average share price is 14% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for RealReal and its competitors, 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 presently has a consensus target price of $3.60, suggesting a potential upside of 0.28%. As a group, “Miscellaneous retail” companies have a potential upside of 2.30%. Given RealReal’s competitors higher possible upside, analysts plainly believe RealReal has less favorable growth aspects than its competitors.

Valuation and Earnings

This table compares RealReal and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
RealReal $549.30 million -$168.47 million -2.15
RealReal Competitors $1.93 billion $36.60 million 9.68

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.

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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