Zalando (OTCMKTS:ZLNDY – Get Free Report) and ThredUp (NASDAQ:TDUP – Get Free Report) are both consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, dividends, profitability, earnings, analyst recommendations, risk and valuation.
Earnings and Valuation
This table compares Zalando and ThredUp”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Zalando | $13.97 billion | 0.49 | $243.36 million | $0.22 | 63.73 |
| ThredUp | $310.81 million | 0.93 | -$20.21 million | ($0.17) | -12.94 |
Zalando has higher revenue and earnings than ThredUp. ThredUp is trading at a lower price-to-earnings ratio than Zalando, 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. 23.1% of ThredUp shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Profitability
This table compares Zalando and ThredUp’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Zalando | 0.70% | 3.46% | 1.06% |
| ThredUp | -6.65% | -37.30% | -13.03% |
Analyst Recommendations
This is a summary of current recommendations and price targets for Zalando and ThredUp, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Zalando | 0 | 1 | 1 | 2 | 3.25 |
| ThredUp | 1 | 0 | 4 | 0 | 2.60 |
ThredUp has a consensus target price of $6.55, suggesting a potential upside of 197.73%. Given ThredUp’s higher probable upside, analysts clearly believe ThredUp is more favorable than Zalando.
Risk & Volatility
Zalando has a beta of 1.46, indicating that its share price is 46% more volatile than the S&P 500. Comparatively, ThredUp has a beta of 2.11, indicating that its share price is 111% more volatile than the S&P 500.
Summary
Zalando beats ThredUp on 9 of the 15 factors compared between the two stocks.
About Zalando
Zalando SE operates an online platform for fashion and lifestyle products. The company operates through Fashion Store and Offprice segments. It provides shoes, apparel, accessories, and beauty products with free delivery and returns, as well as various payment options. The company also sells its products through Lounge by Zalando; and brick-and-mortar outlet stores. It operates in Germany, Austria, Switzerland, Belgium, Croatia, the Czech Republic, Denmark, Estonia, Finland, Hungary, France, Ireland, Italy, Latvia, Lithuania, Luxembourg, the Netherlands, Norway, Poland, Romania, Slovakia, Slovenia, Spain, Sweden, and the United Kingdom. The company was founded in 2008 and is headquartered in Berlin, Germany.
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.
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