Head to Head Review: RealReal (NASDAQ:REAL) and Koala (OTCMKTS:KARE)

RealReal (NASDAQ:REAL) and Koala (OTCMKTS:KARE) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, institutional ownership, valuation, dividends and profitability.

Profitability

This table compares RealReal and Koala’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RealReal	-6.60%	N/A	-10.99%
Koala	N/A	N/A	N/A

Institutional and Insider Ownership

64.7% of RealReal shares are owned by institutional investors. 9.0% of RealReal shares are owned by insiders. Comparatively, 8.1% of Koala shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares RealReal and Koala”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RealReal	$600.48 million	0.96	-$134.20 million	($1.13)	-4.51
Koala	N/A	N/A	N/A	N/A	N/A

Koala has lower revenue, but higher earnings than RealReal.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RealReal	0	2	3	1	2.83
Koala	0	0	0	0	0.00

RealReal currently has a consensus price target of $8.40, indicating a potential upside of 64.71%. Given RealReal’s stronger consensus rating and higher probable upside, equities research analysts clearly believe RealReal is more favorable than Koala.

Summary

RealReal beats Koala on 7 of the 9 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 Koala

Koala Corporation, doing business as Tech World, Inc., a technology company, offers technical services in the areas of security administration, architecture and paradigms, access management system and processes, applications development, operations, data encryption, telecommunications, network and WAN, business continuity planning, crime law, and investigation and ethics. It also provides alternative energy sources for commercial offices and residential houses, and retirement homes; secure and phone encryption communication services; cellular and wireless data services; and staff augmentation and forensic recovery services, as well as writes applications for mobile phones. In addition, the company offers products for the government market that include thermal imaging cameras, secure communication systems, cellular and satellite phones, ERP and CRM software, and RFID and tracking equipment; and the fuel industry, such as car and truck HHO systems, fuel additives, water-engine heating and home cooking systems, and acetylene replacements. Further, it provides products for the television (TV) market, including 2-D to 3-D conversion boxes, cable TV networks, Internet over cable systems, and satellite TV and data systems; and the telecom market, such as calling cards, direct VOIP systems, WI-max and mobile banking systems, network management products, and unified communication systems, as well as for green-energy and bank markets. The company was incorporated in 1993 and is based in Vienna, Virginia.