RealReal (NASDAQ:REAL) vs. Olaplex (NASDAQ:OLPX) Financial Analysis

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

Volatility & Risk

Olaplex has a beta of 2.25, meaning that its share price is 125% more volatile than the S&P 500. Comparatively, RealReal has a beta of 2.6, meaning that its share price is 160% more volatile than the S&P 500.

Earnings & Valuation

This table compares Olaplex and RealReal”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Olaplex	$422.67 million	2.13	$19.52 million	N/A	N/A
RealReal	$600.48 million	3.18	-$134.20 million	($1.38)	-11.86

Olaplex has higher earnings, but lower revenue than RealReal.

Analyst Recommendations

This is a summary of recent ratings and price targets for Olaplex and RealReal, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Olaplex	1	3	2	1	2.43
RealReal	1	2	5	1	2.67

Olaplex currently has a consensus price target of $1.81, indicating a potential upside of 34.26%. RealReal has a consensus price target of $16.79, indicating a potential upside of 2.54%. Given Olaplex’s higher probable upside, equities research analysts plainly believe Olaplex is more favorable than RealReal.

Insider & Institutional Ownership

87.4% of Olaplex shares are owned by institutional investors. Comparatively, 64.7% of RealReal shares are owned by institutional investors. 4.2% of Olaplex shares are owned by insiders. Comparatively, 9.0% of RealReal shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Olaplex	-1.18%	1.31%	0.70%
RealReal	-10.78%	N/A	-18.58%

Summary

Olaplex beats RealReal on 7 of the 13 factors compared between the two stocks.

About Olaplex

Olaplex Holdings, Inc. develops, manufactures, and sells hair care products in the United States and internationally. The company offers hair care shampoos and conditioners for use in treatment, maintenance, and protection of hair, as well as oil, moisture mask, and nourishing hair serum. It provides hair care products to professional hair salons, retailers, and everyday consumers. The company distributes its products through professional distributors in salons, directly to retailers for sale in their physical stores, e-commerce sites, and its website, Olaplex.com, as well as third party e-commerce platforms. The company was founded in 2014 and is based in Santa Barbara, California.

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.