Head-To-Head Contrast: WD-40 (NASDAQ:WDFC) vs. ThredUp (NASDAQ:TDUP)

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

Institutional & Insider Ownership

91.5% of WD-40 shares are owned by institutional investors. Comparatively, 89.1% of ThredUp shares are owned by institutional investors. 0.8% of WD-40 shares are owned by insiders. Comparatively, 27.0% of ThredUp shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for WD-40 and ThredUp, as reported by MarketBeat.

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

WD-40 currently has a consensus target price of $300.00, indicating a potential upside of 45.67%. ThredUp has a consensus target price of $12.50, indicating a potential upside of 62.34%. Given ThredUp’s stronger consensus rating and higher probable upside, analysts clearly believe ThredUp is more favorable than WD-40.

Profitability

This table compares WD-40 and ThredUp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
WD-40	14.68%	31.84%	17.22%
ThredUp	-12.18%	-39.20%	-13.16%

Volatility and Risk

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
WD-40	$619.98 million	4.49	$90.99 million	$6.68	30.83
ThredUp	$298.38 million	3.23	-$76.99 million	($0.30)	-25.67

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.

Summary

WD-40 beats ThredUp on 9 of the 15 factors compared between the two stocks.

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.

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.