ThredUp (NASDAQ:TDUP – Get Free Report) and CarParts.com (NASDAQ:PRTS – Get Free Report) are both small-cap consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, valuation, risk, profitability and institutional ownership.
Analyst Recommendations
This is a summary of recent ratings and target prices for ThredUp and CarParts.com, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ThredUp | 1 | 0 | 4 | 0 | 2.60 |
| CarParts.com | 1 | 1 | 0 | 0 | 1.50 |
ThredUp currently has a consensus target price of $6.55, suggesting a potential upside of 178.72%. CarParts.com has a consensus target price of $6.00, suggesting a potential downside of 24.72%. Given ThredUp’s stronger consensus rating and higher possible upside, equities research analysts plainly believe ThredUp is more favorable than CarParts.com.
Risk and Volatility
ThredUp has a beta of 2.11, meaning that its stock price is 111% more volatile than the S&P 500. Comparatively, CarParts.com has a beta of 0.68, meaning that its stock price is 32% less volatile than the S&P 500.
Earnings and Valuation
This table compares ThredUp and CarParts.com”s top-line revenue, earnings per share (EPS) 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 |
| CarParts.com | $547.53 million | 0.12 | -$50.44 million | ($4.33) | -1.84 |
ThredUp has higher earnings, but lower revenue than CarParts.com. ThredUp is trading at a lower price-to-earnings ratio than CarParts.com, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
89.1% of ThredUp shares are held by institutional investors. Comparatively, 75.3% of CarParts.com shares are held by institutional investors. 23.1% of ThredUp shares are held by company insiders. Comparatively, 6.6% of CarParts.com shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Profitability
This table compares ThredUp and CarParts.com’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% |
| CarParts.com | -5.35% | -47.19% | -14.52% |
Summary
ThredUp beats CarParts.com on 11 of the 13 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 CarParts.com
CarParts.com, Inc., together with its subsidiaries, operates as an online provider of aftermarket auto parts and accessories in the United States and the Philippines. It offers replacement parts, such as parts for the exterior of an automobile; mirror products; engine and chassis components, as well as other mechanical and electrical parts; and performance parts and accessories. The company sells its products to individual customers through its flagship website www.carparts.com and app; online marketplaces, including third-party auction sites and shopping portals; and auto parts wholesale distributors. The company was formerly known as U.S. Auto Parts Network, Inc. and changed its name to CarParts.com, Inc. in July 2020. CarParts.com, Inc. was incorporated in 1995 and is headquartered in Torrance, California.
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