Arhaus (NASDAQ:ARHS – Get Free Report) and ThredUp (NASDAQ:TDUP – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, profitability, earnings, analyst recommendations, institutional ownership, dividends and valuation.
Institutional & Insider Ownership
27.9% of Arhaus shares are held by institutional investors. Comparatively, 89.1% of ThredUp shares are held by institutional investors. 1.2% of Arhaus shares are held by insiders. Comparatively, 23.1% of ThredUp shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Risk & Volatility
Arhaus has a beta of 2.3, suggesting that its share price is 130% more volatile than the S&P 500. Comparatively, ThredUp has a beta of 1.97, suggesting that its share price is 97% more volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Arhaus | 0 | 6 | 4 | 0 | 2.40 |
| ThredUp | 1 | 0 | 4 | 0 | 2.60 |
Arhaus presently has a consensus price target of $9.92, indicating a potential upside of 27.30%. ThredUp has a consensus price target of $6.55, indicating a potential upside of 164.11%. Given ThredUp’s stronger consensus rating and higher probable upside, analysts clearly believe ThredUp is more favorable than Arhaus.
Profitability
This table compares Arhaus and ThredUp’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Arhaus | 4.91% | 17.23% | 4.94% |
| ThredUp | -6.65% | -37.30% | -13.03% |
Valuation and Earnings
This table compares Arhaus and ThredUp”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Arhaus | $1.38 billion | 0.80 | $67.26 million | $0.50 | 15.58 |
| ThredUp | $310.81 million | 1.05 | -$20.21 million | ($0.17) | -14.59 |
Arhaus has higher revenue and earnings than ThredUp. ThredUp is trading at a lower price-to-earnings ratio than Arhaus, indicating that it is currently the more affordable of the two stocks.
Summary
Arhaus beats ThredUp on 8 of the 13 factors compared between the two stocks.
About Arhaus
Arhaus, Inc. operates as a lifestyle brand and premium retailer in the home furnishings market in the United States. It provides merchandise assortments across various categories, including furniture, lighting, textiles, décor, and outdoor. The company's furniture products comprise bedroom, dining room, living room, and home office furnishings, which includes sofas, dining tables and chairs, accent chairs, console and coffee tables, beds, headboards, dressers, desks, bookcases, modular storage, and other items; and outdoor products, such as outdoor dining tables, chairs, chaises and other furniture, lighting, textiles, décor, umbrellas, and fire pits. It offers lighting products, including various distinct and artistic lighting fixtures comprising chandeliers, pendants, table and floor lamps, and sconces; textile products, such as handcrafted indoor and outdoor rugs, bed linens, and pillows and throws; and décor products, including various wall art to mirrors, vases to candles, and other decorative accessories. The company distributes its products through an omni-channel model comprising showrooms, e-commerce platform, print and digital media, and in-home designer services. Arhaus, Inc. was founded in 1986 and is headquartered in Boston Heights, Ohio.
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.
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