Analyzing Shoe Carnival (NASDAQ:SHOE) & ThredUp (NASDAQ:TDUP)

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

Insider and Institutional Ownership

66.0% of Shoe Carnival shares are held by institutional investors. Comparatively, 89.1% of ThredUp shares are held by institutional investors. 33.6% of Shoe Carnival shares are held by company insiders. Comparatively, 23.1% of ThredUp shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

Shoe Carnival has a beta of 1.37, suggesting that its share price is 37% more volatile than the S&P 500. Comparatively, ThredUp has a beta of 2.11, suggesting that its share price is 111% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Shoe Carnival and ThredUp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shoe Carnival	1	1	0	1	2.33
ThredUp	1	0	3	1	2.80

Shoe Carnival currently has a consensus price target of $22.00, suggesting a potential upside of 50.07%. ThredUp has a consensus price target of $6.55, suggesting a potential upside of 214.90%. Given ThredUp’s stronger consensus rating and higher possible upside, analysts clearly believe ThredUp is more favorable than Shoe Carnival.

Valuation & Earnings

This table compares Shoe Carnival 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
Shoe Carnival	$1.14 billion	0.35	$52.27 million	$0.88	16.66
ThredUp	$310.81 million	0.88	-$20.21 million	($0.17)	-12.24

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Shoe Carnival	2.20%	5.32%	3.08%
ThredUp	-6.65%	-37.30%	-13.03%

Summary

Shoe Carnival beats ThredUp on 8 of the 14 factors compared between the two stocks.

About Shoe Carnival

Shoe Carnival, Inc., together with its subsidiaries, operates as a family footwear retailer in the United States. The company offers range of dress, casual, work, and athletic shoes, as well as sandals and boots for men, women, and children; and various accessories. The company also operates stores, and sells its products through online shopping at shoecarnival.com, as well as through mobile app. Shoe Carnival, Inc. was founded in 1978 and is headquartered in Evansville, Indiana.

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.