Prada (OTCMKTS:PRDSY – Get Free Report) and RealReal (NASDAQ:REAL – Get Free Report) are both consumer cyclical companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, earnings, risk, profitability, analyst recommendations and dividends.
Profitability
This table compares Prada and RealReal’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Prada | N/A | N/A | N/A |
| RealReal | -37.00% | N/A | -30.09% |
Earnings & Valuation
This table compares Prada and RealReal’s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Prada | N/A | N/A | N/A | $0.44 | 33.41 |
| RealReal | $603.49 million | 0.42 | -$196.45 million | ($2.27) | -1.13 |
Institutional and Insider Ownership
58.4% of RealReal shares are held by institutional investors. 9.3% of RealReal shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a summary of recent ratings and price targets for Prada and RealReal, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Prada | 0 | 1 | 0 | 0 | 2.00 |
| RealReal | 0 | 8 | 3 | 0 | 2.27 |
RealReal has a consensus price target of $3.26, indicating a potential upside of 27.28%. Given RealReal’s stronger consensus rating and higher possible upside, analysts plainly believe RealReal is more favorable than Prada.
Summary
RealReal beats Prada on 6 of the 10 factors compared between the two stocks.
About Prada
Prada S.p.A., together with its subsidiaries, designs, produces, and distributes leather goods, handbags, footwear, apparel, accessories, and jewelry in Europe, the Americas, the Asia Pacific, Japan, the Middle East, and internationally. The company offers its products under the Prada, Miu Miu, Church's, and Car Shoe brands. It also operates in eyewear and fragrances sector under licensing agreements; food sector under the Marchesi 1824 brand; and sailing races business under Luna Rossa brand name. In addition, the company engages in the real estate business. It sells its products through a network of owned and franchise operated stores; department stores; independent retailers; e-commerce channels; and e-tailers. The company was founded in 1913 and is based in Milan, Italy. Prada S.p.A. is a subsidiary of Prada Holding S.p.A.
About RealReal
The RealReal, Inc. operates an online marketplace for resale luxury goods in the United State. It offers various product categories, including women's fashion, men's fashion, jewelry, and watches. The company was incorporated in 2011 and is headquartered in San Francisco, California.
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