Financial Survey: ThredUp (NASDAQ:TDUP) versus Children’s Place (NASDAQ:PLCE)

ThredUp (NASDAQ:TDUP) and Children’s Place (NASDAQ:PLCE) are both small-cap consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, dividends, risk, earnings, analyst recommendations, valuation and institutional ownership.

Volatility and Risk

ThredUp has a beta of 2.11, indicating that its share price is 111% more volatile than the S&P 500. Comparatively, Children’s Place has a beta of 1.98, indicating that its share price is 98% more volatile than the S&P 500.

Earnings & Valuation

This table compares ThredUp and Children’s Place”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ThredUp	$334.30 million	0.82	-$20.21 million	($0.17)	-12.29
Children’s Place	$1.13 billion	0.01	-$88.26 million	($5.99)	-0.07

ThredUp has higher earnings, but lower revenue than Children’s Place. ThredUp is trading at a lower price-to-earnings ratio than Children’s Place, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations for ThredUp and Children’s Place, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ThredUp	1	0	3	1	2.80
Children’s Place	1	2	0	0	1.67

ThredUp currently has a consensus price target of $6.55, suggesting a potential upside of 213.40%. Children’s Place has a consensus price target of $3.25, suggesting a potential upside of 665.79%. Given Children’s Place’s higher possible upside, analysts clearly believe Children’s Place is more favorable than ThredUp.

Profitability

This table compares ThredUp and Children’s Place’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%
Children’s Place	-11.82%	N/A	-14.84%

Insider & Institutional Ownership

89.1% of ThredUp shares are owned by institutional investors. 23.1% of ThredUp shares are owned by company insiders. Comparatively, 0.9% of Children’s Place shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

ThredUp beats Children’s Place 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 Children’s Place

The Children’s Place, Inc. engages in the provision of apparel, footwear, accessories, and other items for children. The firm also designs contracts to manufacture and sell fashionable and value-priced merchandise under the brand names of The Children’s Place, Baby Place, and Gymboree. It operates through The Children’s Place U.S. and The Children’s Place International segments. The Children’s Place U.S. segment refers to the company’s U.S. and Puerto Rico-based stores and revenue from its U.S. based wholesale business. The Children’s Place International segment is involved in the Canadian-based stores, revenue from the company’s Canadian-based wholesale business, as well as revenue from international franchisees. The company was founded by David Pulver and Clinton A. Clark in 1969 and is headquartered in Secaucus, NJ.