Head to Head Analysis: Reynolds Consumer Products (NASDAQ:REYN) vs. Real Brands (OTCMKTS:RLBD)

Real Brands (OTCMKTS:RLBD) and Reynolds Consumer Products (NASDAQ:REYN) are both consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, dividends, profitability, valuation and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Real Brands	N/A	N/A	N/A
Reynolds Consumer Products	8.20%	15.88%	7.01%

Insider and Institutional Ownership

26.8% of Reynolds Consumer Products shares are held by institutional investors. 40.2% of Real Brands shares are held by insiders. Comparatively, 0.2% of Reynolds Consumer Products shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Real Brands and Reynolds Consumer Products”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Real Brands	$60,000.00	0.00	-$1.33 million	N/A	N/A
Reynolds Consumer Products	$3.70 billion	1.38	$352.00 million	$1.46	16.64

Reynolds Consumer Products has higher revenue and earnings than Real Brands.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Real Brands and Reynolds Consumer Products, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Real Brands	0	0	0	0	0.00
Reynolds Consumer Products	0	7	2	1	2.40

Reynolds Consumer Products has a consensus target price of $26.75, suggesting a potential upside of 10.13%. Given Reynolds Consumer Products’ stronger consensus rating and higher probable upside, analysts plainly believe Reynolds Consumer Products is more favorable than Real Brands.

Volatility and Risk

Real Brands has a beta of 0.83, indicating that its stock price is 17% less volatile than the S&P 500. Comparatively, Reynolds Consumer Products has a beta of 0.58, indicating that its stock price is 42% less volatile than the S&P 500.

Summary

Reynolds Consumer Products beats Real Brands on 10 of the 12 factors compared between the two stocks.

About Real Brands

Real Brands, Inc. operates in the hemp-derived cannabinol (CBD) market. It engages in the extraction of CBD oil/isolate; wholesale of CBD oils and isolate; and production and sale of hemp-derived CBD products, celebrity brands, and white label products. The company was founded in 2011 and is headquartered in North Providence, Rhode Island.

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.