Where Does RealReal Stock Rank Among Competitors?

REAL: RealReal logo
REAL
RealReal

With RealReal surging 38% in a Day, it makes sense to re-evaluate vs its peers. Consistently assessing alternatives is core to a sound investment approach. Here is how RealReal (REAL) stock stacks up against its peers in size, valuation, growth and margin.

  • REAL’s operating margin of -6.7% is negative, lower vs its peer; HBI has 13.1%.
  • REAL’s revenue growth of 12.7% in the last 12 months is strong, outpacing HBI.
  • REAL gained 311.7% in the past year, outperforming its peer, and currently trades at a PE of -49.9

As a quick background, RealReal operates an online marketplace providing consigned luxury goods, including women’s, men’s, kids’ jewelry, and watches in the United States.

A single stock can be risky, but there is a huge value to a broader, diversified approach. Should you buy one stock you like or build a portfolio designed to win across cycles? Our numbers show that the Trefis High Quality Portfolio has turned stock-picking uncertainty into market-beating consistency. This portfolio is incorporated in the asset allocation strategy of Empirical Asset Management — a Boston area wealth manager and Trefis partner — whose asset allocation framework yielded positive returns during the 2008-09 period when the S&P lost more than 40%.

  REAL HBI
Market Cap ($ Bil) 1.8 2.3
Revenue ($ Bil) 0.6 3.5
PE Ratio -49.9 6.9
LTM Revenue Growth 12.7% 4.5%
LTM Operating Margin -6.7% 13.1%
LTM FCF Margin -4.6% -0.2%
12M Market Return 311.7% -18.7%

Why does this matter? REAL just went up 52.1% in a month – peer comparison puts stock performance, valuation, and financials in context – highlighting whether it is truly outperforming, lagging behind, and above all – can this continue? Read Buy or Sell REAL Stock to see if RealReal holds up as a quality investment. Furthermore, there is always a risk of fall after a strong rally – see how the stock has dipped and recovered in the past through REAL Dip Buyer Analysis lens.

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Revenue Growth Comparison

  LTM 2024 2023 2022
REAL 12.7% 9.3% -9.0% 29.0%
HBI 4.5% -3.6% -5.8% -43.2%

Operating Margin Comparison

  LTM 2024 2023 2022
REAL -6.7% -9.4% -22.4% -31.2%
HBI 13.1% 5.3% 7.3% 6.9%

PE Ratio Comparison

  LTM 2024 2023 2022
REAL -49.9 -8.8 -1.2 -0.6
HBI 6.9 -8.9 -88.2 -17.5

While peer comparison is critical, the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.