Critical Review: Chanson International (NASDAQ:CHSN) & RealReal (NASDAQ:REAL)

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

Profitability

This table compares RealReal and Chanson International’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%
Chanson International	N/A	N/A	N/A

Institutional and Insider Ownership

64.7% of RealReal shares are owned by institutional investors. Comparatively, 2.8% of Chanson International shares are owned by institutional investors. 9.0% of RealReal shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares RealReal and Chanson International”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	2.16	-$134.20 million	($1.38)	-8.05
Chanson International	$18.23 million	4.58	$760,000.00	N/A	N/A

Chanson International has lower revenue, but higher earnings than RealReal.

Analyst Recommendations

This is a summary of current ratings for RealReal and Chanson International, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RealReal	1	2	5	1	2.67
Chanson International	1	0	0	0	1.00

RealReal presently has a consensus target price of $17.94, suggesting a potential upside of 61.45%. Given RealReal’s stronger consensus rating and higher possible upside, analysts clearly believe RealReal is more favorable than Chanson International.

Volatility and Risk

RealReal has a beta of 2.65, meaning that its share price is 165% more volatile than the S&P 500. Comparatively, Chanson International has a beta of -2.55, meaning that its share price is 355% less volatile than the S&P 500.

Summary

RealReal beats Chanson International on 8 of the 12 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 Chanson International

Chanson International Holding manufactures and sells a range of bakery products, seasonal products, and beverage products for individual and corporate customers. It offers packaged bakery products, such as cakes, bread, sweets, and snacks; birthday cakes; made-in-store pastries; mooncakes and zongzi products; and other products, including sandwiches, salads, toasts, croissants, soups, and desserts, as well as beverages and juice products. The company sells its products through a chain of bakeries, as well as digital platforms and third-party online food ordering platforms. It also offers eat-in services in its stores. The company sells its bakery and other products under the George Chanson, Patisserie Chanson, and Chanson brand names. It operates in Xinjiang in the People's Republic of China; and New York City, the United States. The company was formerly known as formerly known as RON Holding Limited and changed its name to Chanson International Holding in December 2020. The company was incorporated in 2019 and is headquartered in Urumqi, China. Chanson International Holding operates as a subsidiary of Danton Global Limited.