Financial Survey: RealReal (NASDAQ:REAL) and B&M European Value Retail (OTCMKTS:BMRRY)

RealReal (NASDAQ:REAL) and B&M European Value Retail (OTCMKTS:BMRRY) are both consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their risk, earnings, institutional ownership, dividends, analyst recommendations, valuation and profitability.

Volatility and Risk

RealReal has a beta of 2.6, indicating that its stock price is 160% more volatile than the S&P 500. Comparatively, B&M European Value Retail has a beta of 0.96, indicating that its stock price is 4% less volatile than the S&P 500.

Valuation & Earnings

This table compares RealReal and B&M European Value Retail”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RealReal	$600.48 million	2.96	-$134.20 million	($1.38)	-11.03
B&M European Value Retail	$7.11 billion	0.31	$407.01 million	N/A	N/A

B&M European Value Retail has higher revenue and earnings than RealReal.

Insider and Institutional Ownership

64.7% of RealReal shares are held by institutional investors. Comparatively, 0.0% of B&M European Value Retail shares are held by institutional investors. 9.0% of RealReal shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares RealReal and B&M European Value Retail’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RealReal	-10.78%	N/A	-18.58%
B&M European Value Retail	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent ratings and recommmendations for RealReal and B&M European Value Retail, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RealReal	1	2	5	1	2.67
B&M European Value Retail	0	4	0	2	2.67

RealReal currently has a consensus price target of $17.94, indicating a potential upside of 17.85%. Given RealReal’s higher probable upside, equities research analysts plainly believe RealReal is more favorable than B&M European Value Retail.

Summary

RealReal beats B&M European Value Retail on 6 of the 11 factors compared between the two stocks.

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.

About B&M European Value Retail

B&M European Value Retail S.A. operates general merchandise and grocery stores. The company operates a chain of stores under the B&M, Heron Foods, and B&M Express in the United Kingdom; and stores under the B&M brand in France. It also provides property management services. The company was founded in 1978 and is based in Munsbach, Luxembourg.