Head-To-Head Analysis: RealReal (NASDAQ:REAL) versus Reynolds Consumer Products (NASDAQ:REYN)

RealReal (NASDAQ:REAL) and Reynolds Consumer Products (NASDAQ:REYN) are both consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, risk, valuation, earnings, institutional ownership, analyst recommendations and profitability.

Profitability

This table compares RealReal and Reynolds Consumer Products’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RealReal	-6.03%	N/A	-0.63%
Reynolds Consumer Products	8.09%	15.86%	7.07%

Risk & Volatility

RealReal has a beta of 2.81, indicating that its share price is 181% more volatile than the S&P 500. Comparatively, Reynolds Consumer Products has a beta of 0.61, indicating that its share price is 39% less volatile than the S&P 500.

Institutional & Insider Ownership

64.7% of RealReal shares are held by institutional investors. Comparatively, 26.8% of Reynolds Consumer Products shares are held by institutional investors. 9.0% of RealReal shares are held by company insiders. Comparatively, 0.4% of Reynolds Consumer Products shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RealReal	$692.84 million	1.78	-$41.80 million	($1.09)	-9.51
Reynolds Consumer Products	$3.72 billion	1.24	$301.00 million	$1.44	15.15

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

Analyst Recommendations

This is a breakdown of recent ratings and target prices for RealReal and Reynolds Consumer Products, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RealReal	1	2	5	1	2.67
Reynolds Consumer Products	0	6	1	0	2.14

RealReal currently has a consensus price target of $18.06, suggesting a potential upside of 74.26%. Reynolds Consumer Products has a consensus price target of $24.60, suggesting a potential upside of 12.76%. Given RealReal’s stronger consensus rating and higher probable upside, equities analysts clearly believe RealReal is more favorable than Reynolds Consumer Products.

Summary

RealReal beats Reynolds Consumer Products on 8 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 Reynolds Consumer Products

Reynolds Consumer Products Inc. produces and sells products in cooking, waste and storage, and tableware product categories in the United States and internationally. It operates through four segments: Reynolds Cooking & Baking, Hefty Waste & Storage, Hefty Tableware, and Presto Products. The Reynolds Cooking & Baking segment produces aluminum foil, disposable aluminum pans, parchment paper, freezer paper, wax paper, butcher paper, plastic wrap, baking cups, oven bags, and slow cooker liners under the Reynolds Wrap, Reynolds KITCHENS, and EZ Foil brands in the United States, as well as under the ALCAN brand in Canada and under the Diamond brand internationally. The Hefty Waste & Storage segment offers trash bags under the Hefty Ultra Strong and Hefty Strong brands; and food storage bags under the Hefty and Baggies brands. This segment also provides a suite of products, including compostable bags, bags made from recycled materials, and the orange bags. The Hefty Tableware segment offers disposable and compostable plates, bowls, platters, cups, and cutlery under the Hefty brand. The Presto Products segment primarily sells store brand products in food storage bags, trash bags, reusable storage containers, and plastic wrap categories. It offers both branded and store brand products to grocery stores, mass merchants, warehouse clubs, discount chains, dollar stores, drug stores, home improvement stores, military outlets, and eCommerce retailers. The company was founded in 1947 and is headquartered in Lake Forest, Illinois. Reynolds Consumer Products Inc. is a subsidiary of Packaging Finance Limited.