RealReal (NASDAQ:REAL) and Kohl’s (NYSE:KSS) Head to Head Contrast

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

Institutional and Insider Ownership

98.0% of Kohl’s shares are owned by institutional investors. Comparatively, 64.7% of RealReal shares are owned by institutional investors. 1.5% of Kohl’s shares are owned by company insiders. Comparatively, 2.7% of RealReal shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

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

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%

Valuation & Earnings

This table compares Kohl’s and RealReal”s gross 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.

Analyst Recommendations

This is a breakdown of current ratings for Kohl’s and RealReal, as provided by MarketBeat.

	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 target price of $16.17, indicating a potential downside of 16.09%. RealReal has a consensus target price of $17.75, indicating a potential upside of 75.48%. Given RealReal’s stronger consensus rating and higher probable upside, analysts plainly 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.