ThredUp (NASDAQ:TDUP – Get Free Report) and BRC (NYSE:BRCC – Get Free Report) are both small-cap consumer staples companies, but which is the better business? We will compare the two companies based on the strength of their risk, analyst recommendations, earnings, profitability, institutional ownership, dividends and valuation.
Profitability
This table compares ThredUp and BRC’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ThredUp | -19.66% | -71.49% | -23.61% |
| BRC | -2.89% | -12.88% | -2.59% |
Risk and Volatility
ThredUp has a beta of 1.75, suggesting that its stock price is 75% more volatile than the S&P 500. Comparatively, BRC has a beta of 0.92, suggesting that its stock price is 8% less volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ThredUp | 0 | 1 | 3 | 1 | 3.00 |
| BRC | 0 | 2 | 2 | 0 | 2.50 |
ThredUp presently has a consensus price target of $13.00, indicating a potential upside of 21.95%. BRC has a consensus price target of $2.88, indicating a potential upside of 67.64%. Given BRC’s higher possible upside, analysts plainly believe BRC is more favorable than ThredUp.
Earnings & Valuation
This table compares ThredUp and BRC”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ThredUp | $260.03 million | 5.05 | -$76.99 million | ($0.49) | -21.76 |
| BRC | $391.49 million | 1.09 | -$2.95 million | ($0.15) | -11.43 |
BRC has higher revenue and earnings than ThredUp. ThredUp is trading at a lower price-to-earnings ratio than BRC, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
89.1% of ThredUp shares are held by institutional investors. Comparatively, 16.3% of BRC shares are held by institutional investors. 27.0% of ThredUp shares are held by company insiders. Comparatively, 69.0% of BRC shares are held by company 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.
Summary
BRC beats ThredUp on 9 of the 15 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 BRC
BRC Inc., through its subsidiaries, purchases, roasts, and sells coffee, coffee accessories, and branded apparel in the United States. The company also produces media content, as well as sells coffee brewing equipment, and outdoor and lifestyle gear. It supports active military, veterans, and first responders. The company offers its products through grocery, specialty stores, and other intermediaries; and company operated and franchised Black Rifle Coffee retail coffee shop locations, as well as through e-commerce. BRC Inc. was founded in 2014 and is based in Salt Lake City, Utah.
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