Financial Comparison: ThredUp (NASDAQ:TDUP) vs. Reborn Coffee (NASDAQ:REBN)

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

Insider & Institutional Ownership

1.8% of Reborn Coffee shares are held by institutional investors. Comparatively, 89.1% of ThredUp shares are held by institutional investors. 24.0% of Reborn Coffee shares are held by company insiders. Comparatively, 27.0% of ThredUp shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Reborn Coffee	-191.48%	-995.56%	-170.77%
ThredUp	-12.18%	-39.20%	-13.16%

Valuation and Earnings

This table compares Reborn Coffee and ThredUp”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Reborn Coffee	$5.93 million	1.77	-$4.81 million	($2.56)	-0.69
ThredUp	$260.03 million	2.36	-$76.99 million	($0.30)	-16.37

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

Analyst Ratings

This is a breakdown of recent recommendations for Reborn Coffee and ThredUp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Reborn Coffee	1	0	0	0	1.00
ThredUp	1	1	2	2	2.83

ThredUp has a consensus target price of $12.50, indicating a potential upside of 154.58%. Given ThredUp’s stronger consensus rating and higher possible upside, analysts plainly believe ThredUp is more favorable than Reborn Coffee.

Volatility and Risk

Reborn Coffee has a beta of 2.13, meaning that its share price is 113% more volatile than the S&P 500. Comparatively, ThredUp has a beta of 1.72, meaning that its share price is 72% more volatile than the S&P 500.

Summary

ThredUp beats Reborn Coffee on 12 of the 14 factors compared between the two stocks.

About Reborn Coffee

Reborn Coffee, Inc., through its subsidiaries, operates and franchises retail locations, kiosks, and cafes that focus on serving specialty-roasted coffee in California. It purchases, roasts, and sells coffee, tea and other beverages, and various food items. It offers products in various form factors, such as whole bean roasted coffee bags, single-serve drip bags, and pour over packs. The company also offers its products online. Reborn Coffee, Inc. was founded in 2014 and is headquartered in Brea, 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.