Financial Analysis: RealReal (NASDAQ:REAL) versus Samsonite Group (OTCMKTS:SMSEY)

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

Analyst Recommendations

This is a breakdown of current recommendations for RealReal and Samsonite Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RealReal	1	2	5	1	2.67
Samsonite Group	0	1	0	3	3.50

RealReal presently has a consensus price target of $14.63, suggesting a potential upside of 1.07%. Given RealReal’s higher possible upside, analysts clearly believe RealReal is more favorable than Samsonite Group.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RealReal	$600.48 million	2.81	-$134.20 million	($1.38)	-10.49
Samsonite Group	$3.59 billion	0.95	$345.70 million	$1.08	11.36

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

Profitability

This table compares RealReal and Samsonite Group’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%
Samsonite Group	8.46%	20.98%	6.19%

Insider & Institutional Ownership

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, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

RealReal has a beta of 2.54, suggesting that its stock price is 154% more volatile than the S&P 500. Comparatively, Samsonite Group has a beta of 0.69, suggesting that its stock price is 31% less volatile than the S&P 500.

Summary

Samsonite Group beats RealReal 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 Samsonite Group

Samsonite International S.A. engages in the design, manufacture, sourcing, and distribution of travel luggage bags in North America, Asia, Europe, and Latin America. The company offers luggage, business, computer, outdoor, casual, and women's bags; and travel accessories and slim protective cases for personal electronic devices primarily under the Samsonite, Tumi, American Tourister, Speck, High Sierra, Gregory, Lipault, Kamiliant, Hartmann, and eBags brands, as well as other owned and licensed brand names. It sells its products through various wholesale distribution channels, as well as through company operated retail stores and e-commerce. The company was founded in 1910 and is based in Luxembourg, Luxembourg.