ThredUp (NASDAQ:TDUP) vs. Warby Parker (NYSE:WRBY) Head-To-Head Review

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

Volatility & Risk

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

Insider and Institutional Ownership

89.1% of ThredUp shares are held by institutional investors. Comparatively, 93.2% of Warby Parker shares are held by institutional investors. 27.0% of ThredUp shares are held by company insiders. Comparatively, 18.2% of Warby Parker shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ThredUp	$310.81 million	1.73	-$20.21 million	($0.15)	-28.27
Warby Parker	$871.91 million	2.89	$1.64 million	$0.02	1,181.45

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 Recommendations

This is a summary of recent ratings and recommmendations for ThredUp and Warby Parker, as reported by MarketBeat.com.

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

ThredUp presently has a consensus price target of $9.80, indicating a potential upside of 131.13%. Warby Parker has a consensus price target of $28.00, indicating a potential upside of 18.50%. Given ThredUp’s stronger consensus rating and higher probable upside, research analysts clearly believe ThredUp is more favorable than Warby Parker.

Profitability

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

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

Summary

Warby Parker beats ThredUp on 11 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 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.