Analyzing ThredUp (NASDAQ:TDUP) & Colgate-Palmolive (NYSE:CL)

Colgate-Palmolive (NYSE:CL) and ThredUp (NASDAQ:TDUP) are both consumer staples companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, risk, analyst recommendations, profitability, valuation and dividends.

Earnings & Valuation

This table compares Colgate-Palmolive and ThredUp”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Colgate-Palmolive	$20.10 billion	3.24	$2.89 billion	$3.57	22.65
ThredUp	$260.03 million	2.84	-$76.99 million	($0.30)	-19.67

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Colgate-Palmolive	14.47%	333.39%	17.57%
ThredUp	-12.18%	-39.20%	-13.16%

Insider and Institutional Ownership

80.4% of Colgate-Palmolive shares are owned by institutional investors. Comparatively, 89.1% of ThredUp shares are owned by institutional investors. 0.3% of Colgate-Palmolive shares are owned by insiders. Comparatively, 27.0% of ThredUp shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Volatility & Risk

Colgate-Palmolive has a beta of 0.3, meaning that its share price is 70% less volatile than the S&P 500. Comparatively, ThredUp has a beta of 1.73, meaning that its share price is 73% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Colgate-Palmolive and ThredUp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Colgate-Palmolive	1	4	11	0	2.63
ThredUp	1	1	3	2	2.86

Colgate-Palmolive currently has a consensus price target of $88.19, suggesting a potential upside of 9.07%. ThredUp has a consensus price target of $12.50, suggesting a potential upside of 111.86%. Given ThredUp’s stronger consensus rating and higher possible upside, analysts plainly believe ThredUp is more favorable than Colgate-Palmolive.

Summary

Colgate-Palmolive beats ThredUp on 9 of the 15 factors compared between the two stocks.

About Colgate-Palmolive

Colgate-Palmolive Company, together with its subsidiaries, manufactures and sells consumer products in the United States and internationally. It operates through two segments: Oral, Personal and Home Care; and Pet Nutrition. The Oral, Personal and Home Care segment offers toothpaste, toothbrushes, mouthwash, bar and liquid hand soaps, shower gels, shampoos, conditioners, deodorants and antiperspirants, skin health products, dishwashing detergents, fabric conditioners, household cleaners, and other related items. This segment markets and sells its products under various brands, which include Colgate, Darlie, elmex, hello, meridol, Sorriso, Tom's of Maine, Irish Spring, Palmolive, Protex, Sanex, Softsoap, Lady Speed Stick, Speed Stick, EltaMD, Filorga, PCA SKIN, Ajax, Axion, Fabuloso, Murphy, Suavitel, and Soupline to a range of traditional and eCommerce retailers, wholesalers, and distributors. It includes pharmaceutical products for dentists and other oral health professionals. Its Pet Nutrition segment offers pet nutrition products for everyday nutritional needs under the Hill's Science Diet brand; and a range of therapeutic pet products to help nutritionally support dogs and cats in different stages of health under the Hill's Prescription Diet brand. This segment markets and sells its products through pet supply retailers, veterinarians, and eCommerce retailers. Colgate-Palmolive Company was founded in 1806 and is headquartered in New York, New York.

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.