Head-To-Head Analysis: Wayfair (NYSE:W) versus ThredUp (NASDAQ:TDUP)

Wayfair (NYSE:W) and ThredUp (NASDAQ:TDUP) are both retail/wholesale companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, valuation, risk, institutional ownership, profitability and dividends.

Insider and Institutional Ownership

83.1% of Wayfair shares are held by institutional investors. Comparatively, 23.5% of ThredUp shares are held by institutional investors. 27.5% of Wayfair shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations for Wayfair and ThredUp, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Wayfair 3 10 16 0 2.45
ThredUp 0 1 7 0 2.88

Wayfair currently has a consensus price target of $317.43, suggesting a potential downside of 3.66%. ThredUp has a consensus price target of $20.86, suggesting a potential downside of 24.29%. Given Wayfair’s higher possible upside, equities analysts plainly believe Wayfair is more favorable than ThredUp.

Profitability

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

Net Margins Return on Equity Return on Assets
Wayfair 3.20% -45.45% 12.20%
ThredUp N/A N/A N/A

Valuation and Earnings

This table compares Wayfair and ThredUp’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Wayfair $14.15 billion 2.43 $185.00 million $2.14 153.96
ThredUp $186.01 million 13.95 -$47.88 million N/A N/A

Wayfair has higher revenue and earnings than ThredUp.

Summary

Wayfair beats ThredUp on 8 of the 11 factors compared between the two stocks.

Wayfair Company Profile

Wayfair Inc. engages in the e-commerce business in the United States and internationally. It provides approximately twenty-two million products for the home sector under various brands. The company offers online selections of furniture, décor, housewares, and home improvement products through its sites, including Wayfair, Joss & Main, AllModern, Birch Lane, and Perigold brands. Wayfair Inc. was founded in 2002 and is headquartered in Boston, Massachusetts.

ThredUp Company Profile

ThredUp Inc. operates online resale platforms that allows consumers to buy and sell secondhand women's and kids' apparel, shoes, and accessories. The company was founded in 2009 and is based in Oakland, California.

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