CarParts.com (NASDAQ:PRTS – Get Free Report) and ThredUp (NASDAQ:TDUP – Get Free Report) are both small-cap consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their profitability, analyst recommendations, dividends, earnings, risk, valuation and institutional ownership.
Insider & Institutional Ownership
75.3% of CarParts.com shares are owned by institutional investors. Comparatively, 89.1% of ThredUp shares are owned by institutional investors. 6.6% of CarParts.com shares are owned by insiders. Comparatively, 23.1% of ThredUp shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Risk and Volatility
CarParts.com has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500. Comparatively, ThredUp has a beta of 2.11, suggesting that its stock price is 111% more volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CarParts.com | 1 | 1 | 0 | 0 | 1.50 |
| ThredUp | 1 | 0 | 4 | 0 | 2.60 |
CarParts.com currently has a consensus target price of $6.00, suggesting a potential downside of 30.56%. ThredUp has a consensus target price of $6.55, suggesting a potential upside of 164.11%. Given ThredUp’s stronger consensus rating and higher probable upside, analysts plainly believe ThredUp is more favorable than CarParts.com.
Profitability
This table compares CarParts.com and ThredUp’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CarParts.com | -5.35% | -47.19% | -14.52% |
| ThredUp | -6.65% | -37.30% | -13.03% |
Earnings and Valuation
This table compares CarParts.com and ThredUp”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CarParts.com | $515.80 million | 0.14 | -$50.44 million | ($4.33) | -2.00 |
| ThredUp | $310.81 million | 1.05 | -$20.21 million | ($0.17) | -14.59 |
ThredUp has lower revenue, but higher earnings than CarParts.com. ThredUp is trading at a lower price-to-earnings ratio than CarParts.com, indicating that it is currently the more affordable of the two stocks.
Summary
ThredUp beats CarParts.com on 11 of the 14 factors compared between the two stocks.
About CarParts.com
CarParts.com, Inc., together with its subsidiaries, operates as an online provider of aftermarket auto parts and accessories in the United States and the Philippines. It offers replacement parts, such as parts for the exterior of an automobile; mirror products; engine and chassis components, as well as other mechanical and electrical parts; and performance parts and accessories. The company sells its products to individual customers through its flagship website www.carparts.com and app; online marketplaces, including third-party auction sites and shopping portals; and auto parts wholesale distributors. The company was formerly known as U.S. Auto Parts Network, Inc. and changed its name to CarParts.com, Inc. in July 2020. CarParts.com, Inc. was incorporated in 1995 and is headquartered in Torrance, 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.
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