Reviewing WD-40 (NASDAQ:WDFC) and ThredUp (NASDAQ:TDUP)

ThredUp (NASDAQ:TDUP) and WD-40 (NASDAQ:WDFC) are both consumer staples companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, analyst recommendations, valuation, institutional ownership and earnings.

Risk and Volatility

ThredUp has a beta of 1.71, meaning that its stock price is 71% more volatile than the S&P 500. Comparatively, WD-40 has a beta of 0.16, meaning that its stock price is 84% less volatile than the S&P 500.

Profitability

This table compares ThredUp and WD-40’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%
WD-40	14.68%	31.84%	17.22%

Analyst Ratings

This is a breakdown of current recommendations and price targets for ThredUp and WD-40, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ThredUp	1	1	3	2	2.86
WD-40	0	1	1	0	2.50

ThredUp presently has a consensus target price of $12.50, indicating a potential upside of 48.28%. WD-40 has a consensus target price of $300.00, indicating a potential upside of 55.30%. Given WD-40’s higher possible upside, analysts plainly believe WD-40 is more favorable than ThredUp.

Valuation and Earnings

This table compares ThredUp and WD-40″s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ThredUp	$260.03 million	4.06	-$76.99 million	($0.30)	-28.10
WD-40	$619.98 million	4.22	$90.99 million	$6.68	28.92

WD-40 has higher revenue and earnings than ThredUp. ThredUp is trading at a lower price-to-earnings ratio than WD-40, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

89.1% of ThredUp shares are held by institutional investors. Comparatively, 91.5% of WD-40 shares are held by institutional investors. 27.0% of ThredUp shares are held by company insiders. Comparatively, 0.8% of WD-40 shares are held by company 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

WD-40 beats ThredUp on 10 of the 15 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 WD-40

WD-40 Company develops and sells maintenance products, and homecare and cleaning products in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company provides multi-purpose maintenance products that include aerosol sprays, non-aerosol trigger sprays, precision pens, and in liquid-bulk form products under the WD-40 Multi-Use brand name; specialty maintenance products, such as penetrants, degreasers, corrosion inhibitors, greases, lubricants, and rust removers under the WD-40 Specialist brand; and bike-specific products. It also offers multi-purpose and specialty drip oils, and spray lubricant products, as well as other specialty maintenance products under the 3-IN-ONE brand name; and professional spray maintenance products and lubricants for the bike maintenance market under the GT85 brand name. In addition, the company provides automatic toilet bowl cleaners under the 2000 Flushes brand name; aerosol and liquid trigger carpet stain and odor eliminators under the Spot Shot brand; room and rug deodorizers under the Carpet Fresh brand name; carpet and household cleaners, and rug and room deodorizers under the 1001 brand; heavy-duty hand cleaner products under the Lava brand name in the United States, as well as under the Solvol brand name in Australia; and automatic toilet bowl cleaners under the X-14 brand name. It sells its products primarily through warehouse club stores, hardware stores, automotive parts outlets, industrial distributors and suppliers, mass retail and home center stores, value retailers, grocery stores, online retailers, farm supply, sport retailers, and independent bike dealers. WD-40 Company was founded in 1953 and is headquartered in San Diego, California.