Head-To-Head Contrast: RealReal (NASDAQ:REAL) versus Kohl’s (NYSE:KSS)

Kohl’s (NYSE:KSS) and RealReal (NASDAQ:REAL) are both consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, valuation, risk and profitability.

Volatility and Risk

Kohl’s has a beta of 1.38, suggesting that its share price is 38% more volatile than the S&P 500. Comparatively, RealReal has a beta of 2.69, suggesting that its share price is 169% more volatile than the S&P 500.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kohl’s	$15.53 billion	0.14	$272.00 million	$2.29	8.41
RealReal	$749.91 million	1.64	-$41.80 million	($1.12)	-9.03

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

Insider & Institutional Ownership

98.0% of Kohl’s shares are held by institutional investors. Comparatively, 64.7% of RealReal shares are held by institutional investors. 1.5% of Kohl’s 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, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Kohl’s	1.75%	6.75%	2.02%
RealReal	-10.82%	N/A	-17.99%

Analyst Ratings

This is a breakdown of recent ratings and target prices for Kohl’s and RealReal, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kohl’s	5	8	1	1	1.87
RealReal	1	2	6	0	2.56

Kohl’s currently has a consensus price target of $16.17, indicating a potential downside of 16.09%. RealReal has a consensus price target of $17.75, indicating a potential upside of 75.48%. Given RealReal’s stronger consensus rating and higher possible upside, analysts clearly believe RealReal is more favorable than Kohl’s.

Summary

Kohl’s beats RealReal on 9 of the 15 factors compared between the two stocks.

About Kohl’s

Kohl’s Corporation operates as an omnichannel retailer in the United States. It offers branded apparel, footwear, accessories, beauty, and home products through its stores and website. The company provides its products primarily under the brand names of Croft & Barrow, Jumping Beans, SO, Sonoma Goods for Life, and Tek Gear, as well as Food Network, LC Lauren Conrad, Nine West, and Simply Vera Vera Wang. Kohl’s Corporation was founded in 1988 and is headquartered in Menomonee Falls, 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.