Reviewing My Size (NASDAQ:MYSZ) & RealReal (NASDAQ:REAL)

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

Institutional and Insider Ownership

27.7% of My Size shares are held by institutional investors. Comparatively, 64.7% of RealReal shares are held by institutional investors. 13.7% of My Size shares are held by company insiders. Comparatively, 2.7% of RealReal shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

My Size has a beta of -0.09, indicating that its stock price is 109% less volatile than the S&P 500. Comparatively, RealReal has a beta of 2.71, indicating that its stock price is 171% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
My Size	-66.75%	-161.47%	-82.22%
RealReal	-10.82%	N/A	-17.99%

Analyst Ratings

This is a breakdown of current recommendations for My Size and RealReal, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
My Size	1	0	0	0	1.00
RealReal	1	2	6	0	2.56

RealReal has a consensus price target of $17.75, indicating a potential upside of 83.18%. Given RealReal’s stronger consensus rating and higher probable upside, analysts clearly believe RealReal is more favorable than My Size.

Valuation and Earnings

This table compares My Size and RealReal”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
My Size	$9.36 million	0.15	-$5.85 million	($15.48)	-0.13
RealReal	$692.84 million	1.70	-$41.80 million	($1.12)	-8.65

My Size has higher earnings, but lower revenue than RealReal. RealReal is trading at a lower price-to-earnings ratio than My Size, indicating that it is currently the more affordable of the two stocks.

Summary

RealReal beats My Size on 11 of the 14 factors compared between the two stocks.

About My Size

My Size, Inc., an omnichannel e-commerce platform, provides AI-driven software as a service measurement solutions for fashion ecommerce companies in Israel, Spain, and internationally. It operates through Fashion and Equipment E-Commerce Platform, and SaaS Solutions segments. The company offers Size Form, which generates accurate measurements to find proper fitting clothes and accessories; First Look Smart Mirror, a solution for brick and mortar stores that allows customers to filter the whole physical store by their size and fit; Smart Catalogue, a solution that suggests the launch of new sizes, detects new product niches, and allows brands to adapt their assortment to their customer base; and True Feedback solution. It provides MySizeID; Naiz Fit, which offers SaaS technology solutions that solve size and fit issues, and AI solutions for smarter design; and Orgad, an online retailer. The company was formerly known as Knowledgetree Ventures, Inc. and changed its name to My Size, Inc. in January 2014. My Size, Inc. was incorporated in 1999 and is headquartered in Airport City, Israel.

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.