Critical Contrast: RealReal (NASDAQ:REAL) versus Hengan International Group (OTCMKTS:HEGIY)

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

Profitability

This table compares Hengan International Group and RealReal’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hengan International Group	N/A	N/A	N/A
RealReal	-10.78%	N/A	-18.58%

Analyst Ratings

This is a summary of recent ratings for Hengan International Group and RealReal, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hengan International Group	0	0	0	0	0.00
RealReal	1	2	5	1	2.67

RealReal has a consensus price target of $17.44, suggesting a potential upside of 5.11%. Given RealReal’s stronger consensus rating and higher probable upside, analysts plainly believe RealReal is more favorable than Hengan International Group.

Insider & Institutional Ownership

0.0% of Hengan International Group shares are held by institutional investors. Comparatively, 64.7% of RealReal shares are held by institutional investors. 9.0% of RealReal shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility and Risk

Hengan International Group has a beta of 0.13, meaning that its share price is 87% less volatile than the S&P 500. Comparatively, RealReal has a beta of 2.6, meaning that its share price is 160% more volatile than the S&P 500.

Earnings and Valuation

This table compares Hengan International Group and RealReal”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hengan International Group	$3.15 billion	1.28	$319.73 million	N/A	N/A
RealReal	$662.79 million	2.92	-$134.20 million	($1.38)	-12.02

Hengan International Group has higher revenue and earnings than RealReal.

Summary

RealReal beats Hengan International Group on 8 of the 12 factors compared between the two stocks.

About Hengan International Group

Hengan International Group Company Limited, an investment holding company, manufactures, distributes, and sells personal hygiene products in the People's Republic of China and internationally. The company offers pocket handkerchiefs, box and soft tissue papers, kitchen towels/papers, toilet rolls, first-aid products, enema, garbage and food bags, preservation papers, table cloths and disposable toilet brush, sanitary napkins, pantiliners, overnight pants, wet tissues, maternal and child care products, adult and baby diapers, and cleansing products. It is also involved in the trading of various products for ladies, pregnant women, infants, and kids, as well as disposable fiber-based products; and engages in the ecommerce business. In addition, the company manufactures and distributes heat and power; and manufactures, distributes, and sells gas, protective equipment, medical instrument, skin care products, antiseptics, and household products. Hengan International Group Company Limited was founded in 1985 and is headquartered in Jinjiang, the People's Republic of China.

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.