Financial Comparison: Newell Brands (NASDAQ:NWL) versus ThredUp (NASDAQ:TDUP)

Newell Brands (NASDAQ:NWL) and ThredUp (NASDAQ:TDUP) are both small-cap consumer staples companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, dividends, risk, analyst recommendations, valuation and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Newell Brands and ThredUp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Newell Brands	1	5	4	0	2.30
ThredUp	1	1	3	2	2.86

Newell Brands currently has a consensus price target of $5.83, suggesting a potential upside of 38.23%. ThredUp has a consensus price target of $12.50, suggesting a potential upside of 124.01%. Given ThredUp’s stronger consensus rating and higher probable upside, analysts plainly believe ThredUp is more favorable than Newell Brands.

Institutional & Insider Ownership

92.5% of Newell Brands shares are held by institutional investors. Comparatively, 89.1% of ThredUp shares are held by institutional investors. 0.7% of Newell Brands shares are held by company insiders. Comparatively, 27.0% of ThredUp shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Newell Brands and ThredUp”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Newell Brands	$7.58 billion	0.23	-$216.00 million	($0.06)	-70.33
ThredUp	$298.38 million	2.34	-$76.99 million	($0.30)	-18.60

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Newell Brands	-0.33%	8.64%	2.08%
ThredUp	-12.18%	-39.20%	-13.16%

Volatility and Risk

Newell Brands has a beta of 0.89, indicating that its share price is 11% less volatile than the S&P 500. Comparatively, ThredUp has a beta of 1.73, indicating that its share price is 73% more volatile than the S&P 500.

Summary

ThredUp beats Newell Brands on 8 of the 15 factors compared between the two stocks.

About Newell Brands

Newell Brands Inc. engages in the design, manufacture, sourcing, and distribution of consumer and commercial products worldwide. The company operates in three segments: Home and Commercial Solutions, Learning and Development, and Outdoor and Recreation. The Commercial Solutions segment provides commercial cleaning and maintenance solution products under the Rubbermaid, Rubbermaid Commercial Products, Mapa, and Spontex brands; closet and garage organization products; hygiene systems and material handling solutions; household products, such as kitchen appliances under the Crockpot, Mr. Coffee, Oster, and Sunbeam brands; small appliances under the Breville brand name in Europe; food and home storage products under the FoodSaver, Rubbermaid, Ball, and Sistema brands; fresh preserving products; vacuum sealing products; and gourmet cookware, bakeware, and cutlery under the Calphalon brand; and home fragrance products under the WoodWick and Yankee Candle brands. The Learning and Development segment offers writing instruments, including markers and highlighters, pens, and pencils; art products; activity-based products; labeling solutions; and baby gear and infant care products under the Dymo, Elmer's, EXPO, Graco, NUK, Paper Mate, Parker, and Sharpie brands. The Outdoor and Recreation segment provides outdoor and outdoor-related products, inlcuding technical apparel and on-the-go beverageware under the Campingaz, Coleman, Contigo, and Marmot brands. It serves warehouse clubs, department and drug/grocery stores, mass merchants, home centers, commercial products distributors, specialty retailers, office superstores and supply stores, contract stationers, e-commerce retailers, and sporting goods, as well as direct to consumers online, select contract customers, and other professional customers. Newell Brands Inc. was founded in 1903 and is based in Atlanta, Georgia.

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.