Analyzing Synergy CHC (NASDAQ:SNYR) & ThredUp (NASDAQ:TDUP)

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

Insider & Institutional Ownership

89.1% of ThredUp shares are held by institutional investors. 27.0% of ThredUp shares are held by company insiders. Comparatively, 56.6% of Synergy CHC 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.

Valuation & Earnings

This table compares ThredUp and Synergy CHC”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ThredUp	$298.38 million	3.11	-$76.99 million	($0.30)	-24.72
Synergy CHC	$34.83 million	0.69	$2.12 million	$0.29	7.38

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ThredUp	-12.18%	-39.20%	-13.16%
Synergy CHC	7.77%	-19.51%	14.25%

Analyst Recommendations

This is a breakdown of current recommendations for ThredUp and Synergy CHC, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ThredUp	1	1	3	2	2.86
Synergy CHC	1	0	2	0	2.33

ThredUp presently has a consensus price target of $12.50, suggesting a potential upside of 68.53%. Synergy CHC has a consensus price target of $8.50, suggesting a potential upside of 297.20%. Given Synergy CHC’s higher possible upside, analysts clearly believe Synergy CHC is more favorable than ThredUp.

Summary

Synergy CHC beats ThredUp on 8 of the 14 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 Synergy CHC

Synergy CHC Corp. engages in the marketing and distribution of branded health and wellness products. The company was founded on December 29, 2010 and is headquartered in Westbrook, ME.