Head to Head Analysis: ThredUp (NASDAQ:TDUP) vs. Warby Parker (NYSE:WRBY)

Warby Parker (NYSE:WRBY) and ThredUp (NASDAQ:TDUP) are both consumer staples companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, analyst recommendations, valuation, profitability, earnings and risk.

Institutional and Insider Ownership

93.2% of Warby Parker shares are held by institutional investors. Comparatively, 89.1% of ThredUp shares are held by institutional investors. 18.2% of Warby Parker shares are held by company insiders. Comparatively, 27.0% of ThredUp shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

Warby Parker has a beta of 2.07, suggesting that its stock price is 107% more volatile than the S&P 500. Comparatively, ThredUp has a beta of 1.85, suggesting that its stock price is 85% more volatile than the S&P 500.

Profitability

This table compares Warby Parker and ThredUp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Warby Parker	0.19%	2.22%	1.15%
ThredUp	-6.50%	-34.48%	-11.79%

Earnings & Valuation

This table compares Warby Parker and ThredUp”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Warby Parker	$871.91 million	2.60	$1.64 million	$0.02	1,060.30
ThredUp	$310.81 million	1.61	-$20.21 million	($0.15)	-26.27

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

Analyst Ratings

This is a summary of current ratings and price targets for Warby Parker and ThredUp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Warby Parker	1	5	10	0	2.56
ThredUp	1	1	2	3	3.00

Warby Parker currently has a consensus target price of $28.00, suggesting a potential upside of 32.04%. ThredUp has a consensus target price of $9.80, suggesting a potential upside of 148.73%. Given ThredUp’s stronger consensus rating and higher probable upside, analysts clearly believe ThredUp is more favorable than Warby Parker.

Summary

Warby Parker beats ThredUp on 11 of the 15 factors compared between the two stocks.

About Warby Parker

Warby Parker Inc. provides eyewear products in the United States and Canada. The company offers eyeglasses, sunglasses, light-responsive lenses, blue-light-filtering lenses, non-prescription lenses, and contact lenses. It also provides accessories, such as cases, lenses kit with anti-fog spray, pouches, and anti-fog lens spray through its retail stores, website, and mobile apps. In addition, the company offers eye exams and vision tests. Warby Parker Inc. was incorporated in 2009 and is headquartered in New York, New York.

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.