The RealReal, Inc. (REAL) vs Tapestry, Inc. (TPR)

The RealReal, Inc. and Tapestry, Inc. are both Luxury Goods companies. Tapestry, Inc. is the larger, with a market value of $22.4B against $1.1B — 20.7× the size. The RealReal, Inc. has negative trailing earnings, so its P/E is not meaningful; Tapestry, Inc. trades at 15.2×. The RealReal, Inc. grew revenue faster over the last twelve months: 17.7% against 14.2%. Tapestry, Inc. has the higher net margin (19.1% vs −10.8%) and the higher return on invested capital (62.4% vs 0.00%). Across the 20 metrics below, Tapestry, Inc. leads on 15 and The RealReal, Inc. on 5.

Valuation

Metric REAL TPR Luxury Goods median
P/E n/m 15.18 13.11
P/S 1.43 2.90 0.85
P/B n/m 33.57 2.17
Price to free cash flow 46.52 12.80 12.80
EV/EBITDA 29.89 11.48 11.07
EV/Sales 1.80 3.06 0.69
Earnings yield (7.93%) 6.59% 5.28%
Free cash flow yield 2.15% 7.81% 3.38%

Profitability

Metric REAL TPR Luxury Goods median
Gross margin 74.50% 77.82% 51.24%
Operating margin (0.78%) 23.92% 0.00%
Net margin (10.82%) 19.09% 0.00%
Free cash flow margin 3.06% 22.64% 1.53%
Return on equity 22.66% 197.14% 8.28%
Return on assets (22.30%) 23.02% 0.00%
Return on invested capital 0.00% 62.35% 0.00%

Growth

Metric REAL TPR Luxury Goods median
Revenue growth (TTM) 17.73% 14.17% 5.82%
EPS growth (last fiscal year) 71.06% 786.59% —
Revenue growth, 5-year CAGR 18.23% 6.85% 6.85%
Net income growth, 5-year CAGR 0.00% 12.86% 0.00%

Health

Metric REAL TPR Luxury Goods median
Debt to equity (0.99) 3.44 0.00
Current ratio 0.83 1.75 1.61
Net debt to EBITDA 8.07 0.58 0.26

Dividend

Metric REAL TPR Luxury Goods median
Dividend yield — 3.22% —
Payout ratio 0.00 0.31 0.00

Size

Metric REAL TPR Luxury Goods median
Market cap 1.08b 22.36b 430.47m

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