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LZB vs REAL

LZB
La-Z-Boy Incorporated
NEUTRAL
Price
$35.21
Market Cap
$1.45B
Sector
Consumer Cyclical
AI Confidence
85%
REAL
The RealReal, Inc.
NEUTRAL
Price
$12.08
Market Cap
$1.44B
Sector
Consumer Cyclical
AI Confidence
80%

Valuation

P/E Ratio
LZB
17.61
REAL
--
Forward P/E
LZB
11.32
REAL
59.02
P/B Ratio
LZB
1.38
REAL
-3.44
P/S Ratio
LZB
0.68
REAL
2.07
EV/EBITDA
LZB
9.17
REAL
195.02

Profitability

Gross Margin
LZB
43.64%
REAL
74.59%
Operating Margin
LZB
5.41%
REAL
3.18%
Profit Margin
LZB
3.93%
REAL
-6.03%
ROE
LZB
8.09%
REAL
--
ROA
LZB
4.31%
REAL
-3.61%

Growth

Revenue Growth
LZB
3.8%
REAL
18.3%
Earnings Growth
LZB
-23.5%
REAL
--

Financial Health

Debt/Equity
LZB
0.54
REAL
--
Current Ratio
LZB
1.66
REAL
0.86
Quick Ratio
LZB
0.99
REAL
0.66

Dividends

Dividend Yield
LZB
2.75%
REAL
--
Payout Ratio
LZB
45.1%
REAL
0.0%

AI Verdict

LZB NEUTRAL

La-Z-Boy exhibits strong fundamental health with a Piotroski F-Score of 7/9 and a conservative debt-to-equity ratio of 0.54. While the current price of $35.21 aligns closely with the Graham Number ($33.86), suggesting defensive fair value, there is a stark divergence from the growth-based intrinsic value of $14.0. The company is currently battling significant earnings contraction (-23.5% YoY) despite modest revenue growth. The outlook is a tug-of-war between a robust balance sheet and deteriorating profitability trends.

Strengths
Strong financial health indicated by a Piotroski F-Score of 7/9
Conservative leverage with a Debt/Equity ratio of 0.54
Attractive valuation relative to sales (P/S 0.68) and a PEG ratio under 1.0
Risks
Significant decline in YoY earnings growth (-23.50%)
Bearish technical trend (0/100) and negative insider sentiment
High sensitivity to consumer cyclicality and housing market trends
REAL NEUTRAL

The RealReal exhibits a critical divergence between fundamental health and growth momentum. The Piotroski F-Score of 2/9 indicates severe financial weakness, compounded by a negative Price/Book ratio (-3.44) suggesting negative shareholders' equity and a Current Ratio (0.86) that signals liquidity risk. However, the company shows strong operational recovery with 18.3% YoY revenue growth and a significant positive shift in EPS trajectory. While analysts maintain a 'strong_buy' rating with a target of $18.19, the bearish insider sentiment and poor deterministic health scores necessitate a cautious approach.

Strengths
Strong Gross Margin of 74.59%
Robust Revenue Growth (18.3% YoY and 18.33% Q/Q)
Significant EPS recovery with 109.7% YoY growth
Risks
Severe financial health indicated by Piotroski F-Score of 2/9
Negative shareholders' equity (Price/Book: -3.44)
Liquidity concerns with Current Ratio (0.86) and Quick Ratio (0.66) below 1.0

Compare Another Pair

LZB vs REAL: Head-to-Head Comparison

This page compares La-Z-Boy Incorporated (LZB) and The RealReal, Inc. (REAL) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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