Financial Analysis: RealReal (NASDAQ:REAL) versus B&M European Value Retail (OTCMKTS:BMRRY)

B&M European Value Retail (OTCMKTS:BMRRY) and RealReal (NASDAQ:REAL) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, dividends, analyst recommendations, profitability, risk, institutional ownership and valuation.

Profitability

This table compares B&M European Value Retail and RealReal’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
B&M European Value Retail	N/A	N/A	N/A
RealReal	-10.78%	N/A	-18.58%

Insider and Institutional Ownership

0.0% of B&M European Value Retail 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 hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares B&M European Value Retail and RealReal”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
B&M European Value Retail	$7.11 billion	0.33	$407.01 million	N/A	N/A
RealReal	$600.48 million	3.09	-$134.20 million	($1.38)	-11.51

B&M European Value Retail has higher revenue and earnings than RealReal.

Volatility and Risk

B&M European Value Retail has a beta of 0.96, indicating that its stock price is 4% less volatile than the S&P 500. Comparatively, RealReal has a beta of 2.6, indicating that its stock price is 160% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for B&M European Value Retail and RealReal, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
B&M European Value Retail	0	4	0	2	2.67
RealReal	1	2	5	1	2.67

RealReal has a consensus target price of $17.94, indicating a potential upside of 12.96%. Given RealReal’s higher probable upside, analysts plainly believe RealReal is more favorable than B&M European Value Retail.

Summary

RealReal beats B&M European Value Retail on 6 of the 11 factors compared between the two stocks.

About B&M European Value Retail

B&M European Value Retail S.A. operates general merchandise and grocery stores. The company operates a chain of stores under the B&M, Heron Foods, and B&M Express in the United Kingdom; and stores under the B&M brand in France. It also provides property management services. The company was founded in 1978 and is based in Munsbach, Luxembourg.

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.