ThredUp (NASDAQ:TDUP) & Vipshop (NYSE:VIPS) Head-To-Head Review

ThredUp (NASDAQ:TDUPGet Rating) and Vipshop (NYSE:VIPSGet Rating) are both consumer staples companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, institutional ownership and earnings.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ThredUp $251.79 million 1.03 -$63.18 million ($0.83) -3.13
Vipshop $18.37 billion 0.35 $734.56 million $1.00 9.41

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

Profitability

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

Net Margins Return on Equity Return on Assets
ThredUp -28.65% -41.55% -22.77%
Vipshop 4.05% 15.09% 8.61%

Volatility and Risk

ThredUp has a beta of 0.33, indicating that its share price is 67% less volatile than the S&P 500. Comparatively, Vipshop has a beta of 0.37, indicating that its share price is 63% less volatile than the S&P 500.

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ThredUp 0 5 8 0 2.62
Vipshop 0 5 1 0 2.17

ThredUp currently has a consensus price target of $9.58, indicating a potential upside of 268.34%. Vipshop has a consensus price target of $10.48, indicating a potential upside of 11.41%. Given ThredUp’s stronger consensus rating and higher probable upside, equities analysts plainly believe ThredUp is more favorable than Vipshop.

Institutional and Insider Ownership

59.6% of ThredUp shares are held by institutional investors. Comparatively, 52.3% of Vipshop shares are held by institutional investors. 42.0% of ThredUp shares are held by insiders. Comparatively, 29.5% of Vipshop shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

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

About ThredUp

(Get Rating)

ThredUp Inc., together with its subsidiaries, operates online resale platforms that allows consumers to buy and sell secondhand women's and kids' apparel, shoes, and accessories. ThredUp Inc. was incorporated in 2009 and is headquartered in Oakland, California.

About Vipshop

(Get Rating)

Vipshop Holdings Limited operates online platforms for various brands in the People's Republic of China. It operates in Vip.com, Shan Shan Outlets, and Others segments. The company offers women's apparel, such as casual wear, jeans, dresses, outerwear, lingerie, pajamas, and maternity clothes; men's apparel comprising casual and smart-casual T-shirts, polo shirts, jackets, pants, and underwear; and skin care and cosmetic products, including cleansers, lotions, face and body creams, face masks, sunscreen, foundations, lipsticks, eye shadows, and other cosmetics-related items. It also provides shoes and bags, which comprises casual and formal shoes, purses, satchels, luggage, duffel bags, and wallets; handbags; apparel, gears and accessories, furnishings and decor, toys, and games for boys, girls, infants, and toddlers; sportswear, sports gear, and footwear for various sporting activities; home furnishings, such as bed and bath products, home decor, kitchen and tabletop items, and home appliances; and consumer electronic products. In addition, the company offers food and snacks, beverages, fresh produce, and pet goods; beauty products; and internet finance services, including consumer and supplier financing, and microcredit. Vipshop Holdings Limited provides its branded products through its vip.com and vipshop.com online platforms, as well as through its internet website and cellular phone application. Further, it offers warehousing, logistics, product procurement, research and development, technology development, and consulting services; software development and information technology support solutions; and supply chain services. Vipshop Holdings Limited was founded in 2008 and is headquartered in Guangzhou, the People's Republic of China.

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