Financial Analysis: Webuy Global (NASDAQ:WBUY) vs. RealReal (NASDAQ:REAL)

RealReal (NASDAQ:REAL) and Webuy Global (NASDAQ:WBUY) are both small-cap consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, analyst recommendations, institutional ownership, earnings and dividends.

Earnings & Valuation

This table compares RealReal and Webuy Global’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RealReal	$549.30 million	0.74	-$168.47 million	($1.67)	-2.29
Webuy Global	$61.69 million	0.32	N/A	N/A	N/A

Webuy Global has lower revenue, but higher earnings than RealReal.

Analyst Recommendations

This is a summary of current ratings and target prices for RealReal and Webuy Global, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RealReal	0	4	2	0	2.33
Webuy Global	0	0	0	0	N/A

RealReal presently has a consensus price target of $3.61, suggesting a potential downside of 5.88%. Given RealReal’s higher probable upside, equities research analysts plainly believe RealReal is more favorable than Webuy Global.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
RealReal	-30.67%	N/A	-26.38%
Webuy Global	N/A	N/A	N/A

Institutional and Insider Ownership

64.7% of RealReal shares are held by institutional investors. Comparatively, 0.3% of Webuy Global shares are held by institutional investors. 9.3% of RealReal shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

RealReal beats Webuy Global on 6 of the 8 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 Webuy Global

Webuy Global Ltd operates as an e-commerce retailer company in Singapore, Indonesia, and Malaysia. It sells food and beverages, fresh produces, lifestyle daily essential items, e-vouchers, miscellaneous daily needs products, and other personal care products, as well as sells packaged tours. The company was founded in 2019 and is based in Singapore.