Real Brands (OTCMKTS:RLBD) vs. RealReal (NASDAQ:REAL) Critical Contrast

Real Brands (OTCMKTS:RLBD) and RealReal (NASDAQ:REAL) are both small-cap consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, earnings, analyst recommendations, profitability and valuation.

Profitability

This table compares Real Brands and RealReal’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Real Brands	N/A	N/A	N/A
RealReal	-5.55%	N/A	-8.90%

Analyst Ratings

This is a summary of recent recommendations and price targets for Real Brands and RealReal, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Real Brands	0	0	0	0	0.00
RealReal	1	1	5	1	2.75

RealReal has a consensus price target of $13.50, indicating a potential upside of 24.77%. Given RealReal’s stronger consensus rating and higher possible upside, analysts clearly believe RealReal is more favorable than Real Brands.

Insider & Institutional Ownership

64.7% of RealReal shares are owned by institutional investors. 40.2% of Real Brands shares are owned by company insiders. Comparatively, 9.0% of RealReal shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

Real Brands has a beta of 0.83, indicating that its share price is 17% less volatile than the S&P 500. Comparatively, RealReal has a beta of 2.54, indicating that its share price is 154% more volatile than the S&P 500.

Valuation & Earnings

This table compares Real Brands and RealReal”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Real Brands	$60,000.00	0.00	-$1.33 million	N/A	N/A
RealReal	$600.48 million	2.08	-$134.20 million	($1.06)	-10.21

Real Brands has higher earnings, but lower revenue than RealReal.

Summary

RealReal beats Real Brands on 7 of the 11 factors compared between the two stocks.

About Real Brands

Real Brands, Inc. operates in the hemp-derived cannabinol (CBD) market. It engages in the extraction of CBD oil/isolate; wholesale of CBD oils and isolate; and production and sale of hemp-derived CBD products, celebrity brands, and white label products. The company was founded in 2011 and is headquartered in North Providence, Rhode Island.

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.