The RealReal, Inc. (REAL) vs Signet Jewelers Limited (SIG)

The RealReal, Inc. and Signet Jewelers Limited are both Luxury Goods companies. Signet Jewelers Limited is the larger, with a market value of $3.8B against $1.1B — 3.5× the size. The RealReal, Inc. has negative trailing earnings, so its P/E is not meaningful; Signet Jewelers Limited trades at 11.6×. The RealReal, Inc. grew revenue faster over the last twelve months: 17.7% against 0.59%. Signet Jewelers Limited has the higher net margin (5.19% vs −10.8%) and the higher return on invested capital (22.3% vs 0.00%). Across the 19 metrics below, Signet Jewelers Limited leads on 14 and The RealReal, Inc. on 5.

Valuation

Metric REAL SIG Luxury Goods median
P/E n/m 11.65 13.11
P/S 1.43 0.58 0.85
P/B n/m 2.17 2.17
Price to free cash flow 46.52 7.43 12.80
EV/EBITDA 29.89 6.34 11.07
EV/Sales 1.80 0.57 0.69
Earnings yield (7.93%) 8.59% 5.28%
Free cash flow yield 2.15% 13.45% 3.38%

Profitability

Metric REAL SIG Luxury Goods median
Gross margin 74.50% 39.05% 51.24%
Operating margin (0.78%) 6.84% 0.00%
Net margin (10.82%) 5.19% 0.00%
Free cash flow margin 3.06% 7.87% 1.53%
Return on equity 22.66% 19.85% 8.28%
Return on assets (22.30%) 6.47% 0.00%
Return on invested capital 0.00% 22.28% 0.00%

Growth

Metric REAL SIG Luxury Goods median
Revenue growth (TTM) 17.73% 0.59% 5.82%
EPS growth (last fiscal year) 71.06% 974.07% —
Revenue growth, 5-year CAGR 18.23% 5.45% 6.85%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric REAL SIG Luxury Goods median
Debt to equity (0.99) 0.00 0.00
Current ratio 0.83 1.64 1.61
Net debt to EBITDA 8.07 (1.62) 0.26

Dividend

Metric REAL SIG Luxury Goods median
Dividend yield — 0.94% —
Payout ratio 0.00 0.10 0.00

Size

Metric REAL SIG Luxury Goods median
Market cap 1.08b 3.75b 430.47m

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