Head-To-Head Survey: Interparfums (NASDAQ:IPAR) and RealReal (NASDAQ:REAL)

Interparfums (NASDAQ:IPAR) and RealReal (NASDAQ:REAL) are both consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, risk, valuation, dividends, profitability, analyst recommendations and institutional ownership.

Institutional & Insider Ownership

55.6% of Interparfums shares are owned by institutional investors. Comparatively, 64.7% of RealReal shares are owned by institutional investors. 43.7% of Interparfums shares are owned by insiders. Comparatively, 2.7% of RealReal shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Interparfums and RealReal, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Interparfums	0	3	4	1	2.75
RealReal	1	1	6	1	2.78

Interparfums presently has a consensus price target of $106.00, indicating a potential upside of 14.73%. RealReal has a consensus price target of $17.25, indicating a potential upside of 87.50%. Given RealReal’s stronger consensus rating and higher possible upside, analysts plainly believe RealReal is more favorable than Interparfums.

Volatility & Risk

Interparfums has a beta of 1.16, meaning that its stock price is 16% more volatile than the S&P 500. Comparatively, RealReal has a beta of 2.72, meaning that its stock price is 172% more volatile than the S&P 500.

Earnings & Valuation

This table compares Interparfums and RealReal”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Interparfums	$1.49 billion	1.99	$168.39 million	$5.27	17.53
RealReal	$692.84 million	1.60	-$41.80 million	($1.02)	-9.02

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Interparfums	11.32%	15.47%	10.82%
RealReal	-9.03%	N/A	-19.15%

Summary

Interparfums beats RealReal on 9 of the 14 factors compared between the two stocks.

About Interparfums

Inter Parfums, Inc., together with its subsidiaries, manufactures, markets, and distributes a range of fragrances and fragrance related products in the United States and internationally. It operates in two segments, European Based Operations and United States Based Operations. The company offers its fragrance and cosmetic products under the Boucheron, Coach, Jimmy Choo, Karl Lagerfeld, Kate Spade, Lanvin, Moncler, Montblanc, Rochas, S.T. Dupont, Van Cleef & Arpels, Abercrombie & Fitch, Anna Sui, Donna Karan, DKNY, Emanual Ungaro, Ferragamo, Graff, GUESS, Hollister, MCM, Oscar de la Renta, Ungaro, and Roberto Cavalli brands, as well as French Connection, Intimate, and Dunhill, Lacoste names. It sells its products to department stores, perfumeries, specialty stores, duty free shops, and domestic and international wholesalers, and distributors, as well as through e-commerce. The company was formerly known as Jean Philippe Fragrances, Inc. and changed its name to Inter Parfums, Inc. in July 1999. Inter Parfums, Inc. was founded in 1982 and is headquartered in New York, New York.

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.