RealReal (NASDAQ:REAL) versus Luvu Brands (OTCMKTS:LUVU) Financial Survey

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
RealReal	-10.78%	N/A	-18.58%
Luvu Brands	-1.49%	-14.33%	-4.08%

Volatility and Risk

RealReal has a beta of 2.68, meaning that its share price is 168% more volatile than the S&P 500. Comparatively, Luvu Brands has a beta of 1.67, meaning that its share price is 67% more volatile than the S&P 500.

Institutional and Insider Ownership

64.7% of RealReal shares are owned by institutional investors. 9.0% of RealReal shares are owned by company insiders. Comparatively, 45.9% of Luvu Brands shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares RealReal and Luvu Brands”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RealReal	$600.48 million	3.15	-$134.20 million	($1.38)	-11.75
Luvu Brands	$24.69 million	0.10	-$450,000.00	($0.01)	-3.10

Luvu Brands has lower revenue, but higher earnings than RealReal. RealReal is trading at a lower price-to-earnings ratio than Luvu Brands, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RealReal	1	2	5	1	2.67
Luvu Brands	0	0	0	0	0.00

RealReal presently has a consensus price target of $16.36, indicating a potential upside of 0.91%. Given RealReal’s stronger consensus rating and higher possible upside, analysts clearly believe RealReal is more favorable than Luvu Brands.

Summary

RealReal beats Luvu Brands on 9 of the 15 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 Luvu Brands

Luvu Brands, Inc. designs, manufactures, and markets various consumer lifestyle products worldwide. The company offers sensuality and intimacy products under the Liberator brand; and bed therapy products, which assistive in relieving medical conditions associated with acid reflux, surgery recovery, and chronic pain under the Avana brand. It also provides daybeds, sofas, and beanbags made from virgin and re-purposed polyurethane foam under the Jaxx brand. In addition, the company is involved in the purchase and resale of products to e-merchants, retailers, and e-commerce sites, as well as provision of contract manufacturing and fulfillment services. It markets its products through various websites comprising liberator.com, jaxxliving.com, and avanacomfort.com, as well as through distributors, retailers, and e-tailers across various channels of adult, mass market, drug, and specialty accounts. The company was formerly known as Liberator, Inc. and changed its name to Luvu Brands, Inc. in November 2015. Luvu Brands, Inc. was incorporated in 1999 and is headquartered in Atlanta, Georgia.