Analyzing ThredUp (NASDAQ:TDUP) and National Vision (NASDAQ:EYE)

National Vision (NASDAQ:EYEGet 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 risk, valuation, institutional ownership, analyst recommendations, dividends, earnings and profitability.

Analyst Ratings

This is a breakdown of recent ratings for National Vision and ThredUp, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
National Vision 1 4 6 0 2.45
ThredUp 1 1 3 2 2.86

National Vision currently has a consensus price target of $27.00, suggesting a potential upside of 6.17%. ThredUp has a consensus price target of $12.50, suggesting a potential upside of 67.67%. Given ThredUp’s stronger consensus rating and higher possible upside, analysts plainly believe ThredUp is more favorable than National Vision.

Earnings and Valuation

This table compares National Vision and ThredUp”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
National Vision $1.92 billion 1.05 -$28.50 million ($0.03) -847.67
ThredUp $260.03 million 3.59 -$76.99 million ($0.30) -24.85

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

Risk & Volatility

National Vision has a beta of 1.33, meaning that its share price is 33% more volatile than the S&P 500. Comparatively, ThredUp has a beta of 1.7, meaning that its share price is 70% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
National Vision -0.12% 3.58% 1.52%
ThredUp -12.18% -39.20% -13.16%

Institutional and Insider Ownership

89.1% of ThredUp shares are held by institutional investors. 2.7% of National Vision shares are held by insiders. Comparatively, 27.0% of ThredUp shares are held by 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.

Summary

ThredUp beats National Vision on 8 of the 15 factors compared between the two stocks.

About National Vision

(Get Free Report)

National Vision Holdings, Inc., through its subsidiaries, operates as an optical retailer in the United States. The company operates in two segments, Owned & Host and Legacy. It offers eyeglasses and contact lenses, and optical accessory products; provides eye exams through its America’s Best, Eyeglass World, Vista Optical, Fred Meyer, and Vista Optical military, as well as Vision Center branded stores; and offers health maintenance organization and optometric services. National Vision Holdings, Inc. was founded in 1990 and is headquartered in Duluth, Georgia.

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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