ThredUp (NASDAQ:TDUP – Get Free Report) and Winmark (NASDAQ:WINA – Get Free Report) are both small-cap consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, dividends, risk, profitability, institutional ownership, valuation and analyst recommendations.
Profitability
This table compares ThredUp and Winmark’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ThredUp | -6.65% | -37.30% | -13.03% |
| Winmark | 47.09% | -99.47% | 103.54% |
Analyst Ratings
This is a breakdown of recent ratings and target prices for ThredUp and Winmark, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ThredUp | 1 | 0 | 4 | 0 | 2.60 |
| Winmark | 0 | 1 | 0 | 0 | 2.00 |
Earnings & Valuation
This table compares ThredUp and Winmark”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ThredUp | $310.81 million | 0.99 | -$20.21 million | ($0.17) | -13.82 |
| Winmark | $86.06 million | 12.31 | $41.65 million | $11.02 | 26.78 |
Winmark has lower revenue, but higher earnings than ThredUp. ThredUp is trading at a lower price-to-earnings ratio than Winmark, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
ThredUp has a beta of 2.11, indicating that its share price is 111% more volatile than the S&P 500. Comparatively, Winmark has a beta of 0.57, indicating that its share price is 43% less volatile than the S&P 500.
Institutional & Insider Ownership
89.1% of ThredUp shares are owned by institutional investors. Comparatively, 73.3% of Winmark shares are owned by institutional investors. 23.1% of ThredUp shares are owned by company insiders. Comparatively, 10.4% of Winmark shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Summary
ThredUp beats Winmark on 8 of the 14 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 Winmark
Winmark Corporation, a resale company operates as a franchisor for small business in the United States and Canada. The company franchises retail stores concepts that buy, sell and trade merchandise. It also operates middle-market equipment leasing business. In addition, the company buys and sells used clothing and accessories geared toward the teenage and young adult market under Plato’s Closet brand; and operates stores which buys and sells used and new children’s clothing, toys, furniture, equipment, and accessories primarily to parents of children ages infant to 12 years under the Once Upon A Child brand. Further, it buys, sells, trades in, and used and new sporting goods, equipment, and accessories for various athletic activities including team sports, such as baseball/softball, hockey, football, lacrosse, and soccer, as well as fitness, ski/snowboard, golf, and others under the Play It Again Sports brand; and buys and sells used women’s apparel, shoes, and accessories under the Style Encore brand. Additionally, the company buys, sells, trades in, and used and new musical instruments, speakers, amplifiers, music-related electronics, and related accessories under the Music Go Round brand. Winmark Corporation was incorporated in 1988 and is headquartered in Minneapolis, Minnesota.
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