Head-To-Head Comparison: Spectrum Brands (NYSE:SPB) versus RealReal (NASDAQ:REAL)

Spectrum Brands (NYSE:SPB) and RealReal (NASDAQ:REAL) are both small-cap consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, valuation, institutional ownership, earnings, dividends, profitability and analyst recommendations.

Volatility and Risk

Spectrum Brands has a beta of 0.65, meaning that its stock price is 35% less volatile than the S&P 500. Comparatively, RealReal has a beta of 2.71, meaning that its stock price is 171% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Spectrum Brands and RealReal, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Spectrum Brands	0	3	3	0	2.50
RealReal	1	1	6	1	2.78

Spectrum Brands presently has a consensus target price of $86.20, indicating a potential upside of 4.19%. RealReal has a consensus target price of $17.25, indicating a potential upside of 80.82%. Given RealReal’s stronger consensus rating and higher possible upside, analysts plainly believe RealReal is more favorable than Spectrum Brands.

Insider & Institutional Ownership

64.7% of RealReal shares are held by institutional investors. 3.9% of Spectrum Brands shares are held by company insiders. Comparatively, 2.7% 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.

Earnings & Valuation

This table compares Spectrum Brands and RealReal”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Spectrum Brands	$2.81 billion	0.68	$99.70 million	$5.24	15.79
RealReal	$692.84 million	1.66	-$41.80 million	($1.02)	-9.35

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Spectrum Brands	4.47%	8.23%	4.53%
RealReal	-9.03%	N/A	-19.15%

Summary

Spectrum Brands beats RealReal on 8 of the 15 factors compared between the two stocks.

About Spectrum Brands

Spectrum Brands Holdings, Inc. operates as a branded consumer products and home essentials company in North America, Europe, the Middle East, Africa, and Asia-Pacific regions. It operates through three segments: Home and Personal Care; Global Pet Care; and Home and Garden. The Home and Personal Care segment provides home appliances under the Black & Decker, Russell Hobbs, George Foreman, PowerXL, Emeril Legasse, Copper Chef, Toastmaster, Juiceman, Farberware, and Breadman brands; and personal care products under the Remington brand. The Global Pet Care segment provides dog and cat chews, treats, wet and dry foods, dog and cat clean-up and food, training, health and grooming, indoor birds, and small animal food and care products under the Good'n'Fun, DreamBone, GOOD BOY, SmartBones, IAMS, EUKANUBA, Nature's Miracle, FURminator, Dingo, 8IN1, Meowee!, and Wild Harvest brands. This segment also offers aquarium kits, stand-alone tanks, and aquatics equipment and consumables under the Tetra, Marineland, Instant Ocean, GloFish, and OmegaSea brands. The Home and Garden segment provides outdoor insect and weed control solutions, and animal repellents under the Spectracide, Garden Safe, Liquid Fence, and EcoLogic brands; household pest control solutions under the Hot Shot, Black Flag, Real-Kill, Ultra Kill, The Ant Trap, and Rid-A-Bug brand names; household surface cleaning, maintenance, and restoration products, including bottled liquids, mops, wipes, and markers under the Rejuvenate brand name; and personal-use pesticides and insect repellent products under the Cutter and Repel brands. The company sells its products through retailers, e-commerce and online retailers, wholesalers, and distributors. Spectrum Brands Holdings, Inc. was founded in 1906 and is headquartered in Middleton, Wisconsin.

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.