ThredUp (NASDAQ:TDUP – Get Free Report) and Reborn Coffee (NASDAQ:REBN – Get Free Report) are both small-cap consumer staples companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, analyst recommendations, dividends, institutional ownership and profitability.
Insider & Institutional Ownership
89.1% of ThredUp shares are held by institutional investors. Comparatively, 1.8% of Reborn Coffee shares are held by institutional investors. 27.0% of ThredUp shares are held by insiders. Comparatively, 24.0% of Reborn Coffee shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Risk and Volatility
ThredUp has a beta of 1.72, meaning that its share price is 72% more volatile than the S&P 500. Comparatively, Reborn Coffee has a beta of 2.13, meaning that its share price is 113% more volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ThredUp | 1 | 1 | 2 | 2 | 2.83 |
| Reborn Coffee | 1 | 0 | 0 | 0 | 1.00 |
ThredUp presently has a consensus price target of $12.50, suggesting a potential upside of 156.15%. Given ThredUp’s stronger consensus rating and higher possible upside, analysts clearly believe ThredUp is more favorable than Reborn Coffee.
Profitability
This table compares ThredUp and Reborn Coffee’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ThredUp | -12.18% | -39.20% | -13.16% |
| Reborn Coffee | -191.48% | -995.56% | -170.77% |
Valuation and Earnings
This table compares ThredUp and Reborn Coffee”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ThredUp | $260.03 million | 2.35 | -$76.99 million | ($0.30) | -16.27 |
| Reborn Coffee | $5.93 million | 1.81 | -$4.81 million | ($2.56) | -0.70 |
Reborn Coffee has lower revenue, but higher earnings than ThredUp. ThredUp is trading at a lower price-to-earnings ratio than Reborn Coffee, indicating that it is currently the more affordable of the two stocks.
Summary
ThredUp beats Reborn Coffee on 12 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 Reborn Coffee
Reborn Coffee, Inc., through its subsidiaries, operates and franchises retail locations, kiosks, and cafes that focus on serving specialty-roasted coffee in California. It purchases, roasts, and sells coffee, tea and other beverages, and various food items. It offers products in various form factors, such as whole bean roasted coffee bags, single-serve drip bags, and pour over packs. The company also offers its products online. Reborn Coffee, Inc. was founded in 2014 and is headquartered in Brea, California.
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