Head-To-Head Analysis: Ollie’s Bargain Outlet (NASDAQ:OLLI) vs. ThredUp (NASDAQ:TDUP)

Ollie’s Bargain Outlet (NASDAQ:OLLIGet Free Report) and ThredUp (NASDAQ:TDUPGet Free Report) are both consumer staples companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, profitability, valuation, risk, institutional ownership, earnings and analyst recommendations.

Profitability

This table compares Ollie’s Bargain Outlet and ThredUp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ollie’s Bargain Outlet 8.74% 12.66% 8.20%
ThredUp -19.66% -71.49% -23.61%

Analyst Recommendations

This is a breakdown of recent ratings for Ollie’s Bargain Outlet and ThredUp, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ollie’s Bargain Outlet 0 5 8 0 2.62
ThredUp 0 1 3 1 3.00

Ollie’s Bargain Outlet currently has a consensus target price of $143.46, indicating a potential upside of 7.54%. ThredUp has a consensus target price of $13.00, indicating a potential upside of 12.07%. Given ThredUp’s stronger consensus rating and higher probable upside, analysts plainly believe ThredUp is more favorable than Ollie’s Bargain Outlet.

Earnings & Valuation

This table compares Ollie’s Bargain Outlet and ThredUp”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ollie’s Bargain Outlet $2.27 billion 3.60 $199.76 million $3.45 38.67
ThredUp $260.03 million 5.49 -$76.99 million ($0.49) -23.67

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

Insider and Institutional Ownership

89.1% of ThredUp shares are owned by institutional investors. 0.8% of Ollie’s Bargain Outlet shares are owned by insiders. Comparatively, 27.0% of ThredUp shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

Ollie’s Bargain Outlet has a beta of 0.45, meaning that its stock price is 55% less volatile than the S&P 500. Comparatively, ThredUp has a beta of 1.75, meaning that its stock price is 75% more volatile than the S&P 500.

Summary

Ollie’s Bargain Outlet beats ThredUp on 8 of the 15 factors compared between the two stocks.

About Ollie’s Bargain Outlet

(Get Free Report)

Ollie’s Bargain Outlet Holdings, Inc. is a holding company, which engages in the retail of closeouts, excess inventory, and salvage merchandise. It offers overstocks, package changes, manufacturer refurbished goods, and irregulars. The company’s products include housewares, food, books and stationery, bed and bath, floor coverings, electronics and toys. Ollie’s Bargain Outlet Holdings was founded by Mark Butler, Mort Bernstein, Oliver Rosenberg and Harry Coverman on July 29, 1982, and is headquartered in Harrisburg, PA.

About ThredUp

(Get Free Report)

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.

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