Head to Head Comparison: Lavoro (NASDAQ:LVRO) & RealReal (NASDAQ:REAL)

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

Volatility and Risk

Lavoro has a beta of 0.12, meaning that its share price is 88% less volatile than the S&P 500. Comparatively, RealReal has a beta of 2.99, meaning that its share price is 199% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Lavoro	-5.99%	-6.44%	-1.45%
RealReal	-30.67%	N/A	-26.38%

Analyst Recommendations

This is a breakdown of recent ratings for Lavoro and RealReal, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lavoro	0	1	2	0	2.67
RealReal	0	4	2	0	2.33

Lavoro presently has a consensus target price of $10.00, indicating a potential upside of 67.22%. RealReal has a consensus target price of $3.61, indicating a potential upside of 6.30%. Given Lavoro’s stronger consensus rating and higher possible upside, analysts clearly believe Lavoro is more favorable than RealReal.

Insider & Institutional Ownership

2.5% of Lavoro shares are owned by institutional investors. Comparatively, 64.7% of RealReal shares are owned by institutional investors. 9.3% of RealReal shares are owned 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.

Valuation and Earnings

This table compares Lavoro and RealReal’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lavoro	$1.79 billion	0.39	-$50.50 million	($0.98)	-6.10
RealReal	$549.30 million	0.66	-$168.47 million	($1.67)	-2.04

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

Summary

Lavoro beats RealReal on 7 of the 13 factors compared between the two stocks.

About Lavoro

Lavoro Limited operates as an agricultural inputs retailer. The company operates through three segments: Brazil Cluster, LATAM Cluster, and Crop Care Cluster. It distributes agricultural inputs, such as crop protection, seeds, fertilizers, foliar fertilizers, biologicals, adjuvants, organominerals, and others for the agricultural industry. The company also produces specialty fertilizers, crop protection products, and biological crop inputs. It operates in Brazil, Colombia, and Uruguay. The company sells its products through its physical stores and digital channel. Lavoro Limited was founded in 2017 and is headquartered in Sao Paulo, Brazil.

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.