ThredUp (NASDAQ:TDUP) & Clorox (NYSE:CLX) Critical Survey

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

Insider and Institutional Ownership

78.5% of Clorox shares are held by institutional investors. Comparatively, 89.1% of ThredUp shares are held by institutional investors. 0.6% of Clorox shares are held by company insiders. Comparatively, 27.0% of ThredUp shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Clorox and ThredUp”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Clorox	$6.77 billion	1.88	$810.00 million	$6.37	16.34
ThredUp	$298.38 million	2.95	-$76.99 million	($0.30)	-23.47

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

Analyst Recommendations

This is a summary of current ratings for Clorox and ThredUp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Clorox	5	12	1	0	1.78
ThredUp	1	1	3	2	2.86

Clorox presently has a consensus target price of $125.69, suggesting a potential upside of 20.75%. ThredUp has a consensus target price of $12.50, suggesting a potential upside of 77.56%. Given ThredUp’s stronger consensus rating and higher probable upside, analysts plainly believe ThredUp is more favorable than Clorox.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Clorox	11.40%	377.86%	17.35%
ThredUp	-12.18%	-39.20%	-13.16%

Risk & Volatility

Clorox has a beta of 0.52, suggesting that its stock price is 48% less volatile than the S&P 500. Comparatively, ThredUp has a beta of 1.7, suggesting that its stock price is 70% more volatile than the S&P 500.

Summary

ThredUp beats Clorox on 8 of the 15 factors compared between the two stocks.

About Clorox

The Clorox Company manufactures and markets consumer and professional products worldwide. It operates through four segments: Health and Wellness, Household, Lifestyle, and International. The Health and Wellness segment offers cleaning products, such as laundry additives and home care products primarily under the Clorox, Clorox2, Scentiva, Pine-Sol, Liquid-Plumr, Tilex, and Formula 409 brands; professional cleaning and disinfecting products under the CloroxPro and Clorox Healthcare brands; professional food service products under the Hidden Valley brand; and vitamins, minerals and supplement products under the RenewLife, Natural Vitality, NeoCell, and Rainbow Light brands in the United States. The Household segment provides cat litter products under the Fresh Step and Scoop Away brands; bags and wraps under the Glad brand; and grilling products under the Kingsford brand in the United States. The Lifestyle segment offers dressings, dips, seasonings, and sauces primarily under the Hidden Valley brand; natural personal care products under the Burt's Bees brand; and water-filtration products under the Brita brand in the United States. The International segment provides laundry additives; home care products; water-filtration systems; digestive health products; grilling products; cat litter products; food products; bags and wraps; natural personal care products; and professional cleaning and disinfecting products internationally primarily under the Clorox, Ayudin, Clorinda, Poett, Pine-Sol, Glad, Brita, RenewLife, Ever Clean and Burt's Bees brands. It sells its products primarily through mass retailers; grocery outlets; warehouse clubs; dollar stores; home hardware centers; drug, pet, and military stores; third-party and owned e-commerce channels; and distributors, as well as a direct sales force The Clorox Company was founded in 1913 and is headquartered in Oakland, California.

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.