ThredUp (NASDAQ:TDUP – Get Free Report) and RH (NYSE:RH – Get Free Report) are both consumer staples companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, profitability, valuation, analyst recommendations, dividends, earnings and institutional ownership.
Insider and Institutional Ownership
89.1% of ThredUp shares are owned by institutional investors. Comparatively, 90.2% of RH shares are owned by institutional investors. 27.0% of ThredUp shares are owned by company insiders. Comparatively, 27.0% of RH shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Risk & Volatility
ThredUp has a beta of 1.71, indicating that its stock price is 71% more volatile than the S&P 500. Comparatively, RH has a beta of 2.23, indicating that its stock price is 123% more volatile than the S&P 500.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| ThredUp | -19.66% | -71.49% | -23.61% |
| RH | 3.20% | -113.58% | 3.08% |
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for ThredUp and RH, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ThredUp | 1 | 1 | 3 | 1 | 2.67 |
| RH | 4 | 7 | 10 | 0 | 2.29 |
ThredUp presently has a consensus target price of $13.00, suggesting a potential upside of 45.58%. RH has a consensus target price of $259.29, suggesting a potential upside of 43.25%. Given ThredUp’s stronger consensus rating and higher possible upside, analysts plainly believe ThredUp is more favorable than RH.
Valuation & Earnings
This table compares ThredUp and RH”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ThredUp | $260.03 million | 4.23 | -$76.99 million | ($0.49) | -18.22 |
| RH | $3.18 billion | 1.07 | $72.41 million | $5.37 | 33.71 |
RH has higher revenue and earnings than ThredUp. ThredUp is trading at a lower price-to-earnings ratio than RH, indicating that it is currently the more affordable of the two stocks.
Summary
RH beats ThredUp on 9 of the 14 factors compared between the two stocks.
About ThredUp
ThredUp Inc., together with its subsidiaries, operates an online resale platform in the United States and internationally. Its platform enables consumers to buy and sell primarily secondhand apparel, shoes, and accessories. ThredUp Inc. was incorporated in 2009 and is headquartered in Oakland, California.
About RH
RH, together with its subsidiaries, operates as a retailer in the home furnishings market. The company offers products in various categories, including furniture, lighting, textiles, bathware, décor, outdoor and garden, baby, child, and teen furnishings. It provides its products through rh.com, rhbabyandchild.com, rhteen.com, rhmodern.com, and waterworks.com online channels, as well as operates RH Galleries, RH outlet stores, RH Guesthouse, and Waterworks showrooms in the United States, Canada, the United Kingdom, and Germany. The company was formerly known as Restoration Hardware Holdings, Inc. and changed its name to RH in January 2017. RH was incorporated in 2011 and is headquartered in Corte Madera, California.
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