Financial Analysis: RDE (NASDAQ:GIFT) & ThredUp (NASDAQ:TDUP)

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

Institutional & Insider Ownership

89.1% of ThredUp shares are held by institutional investors. 34.4% of ThredUp shares are held by insiders. Comparatively, 20.5% of RDE shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ThredUp	-22.16%	-78.74%	-29.58%
RDE	-21.08%	-76.24%	-46.38%

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ThredUp	$322.02 million	0.77	-$71.25 million	($0.64)	-3.39
RDE	$97.01 million	0.26	N/A	N/A	N/A

RDE has lower revenue, but higher earnings than ThredUp.

Volatility & Risk

ThredUp has a beta of 1.66, suggesting that its share price is 66% more volatile than the S&P 500. Comparatively, RDE has a beta of -0.73, suggesting that its share price is 173% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for ThredUp and RDE, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ThredUp	0	1	3	0	2.75
RDE	0	0	0	0	0.00

ThredUp currently has a consensus price target of $3.50, suggesting a potential upside of 61.29%. Given ThredUp’s stronger consensus rating and higher probable upside, research analysts clearly believe ThredUp is more favorable than RDE.

Summary

ThredUp beats RDE on 9 of the 11 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 RDE

RDE, Inc. owns and operates a restaurant deal space in the United States. The company operates Restaurant.com that connects digital consumers, businesses, and communities with dining and merchant deal options at approximately 182,500 restaurants and retailers to approximately 7.8 million customers. It sells discount certificates for restaurants, as well as complementary entertainment and travel offerings, and consumer products on behalf of third-party merchants. The company is based in Schaumburg, Illinois.