Analyzing ThredUp (NASDAQ:TDUP) & Ahold (OTCMKTS:ADRNY)

ThredUp (NASDAQ:TDUP) and Ahold (OTCMKTS:ADRNY) are both consumer staples companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, valuation, analyst recommendations, dividends, risk, institutional ownership and earnings.

Profitability

This table compares ThredUp and Ahold’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%
Ahold	2.25%	16.23%	4.74%

Institutional and Insider Ownership

89.1% of ThredUp shares are held by institutional investors. Comparatively, 0.2% of Ahold shares are held by institutional investors. 27.0% of ThredUp shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ThredUp	1	1	3	2	2.86
Ahold	1	1	0	3	3.00

ThredUp currently has a consensus target price of $12.50, indicating a potential upside of 133.64%. Given ThredUp’s higher possible upside, research analysts plainly believe ThredUp is more favorable than Ahold.

Volatility & Risk

ThredUp has a beta of 1.73, indicating that its share price is 73% more volatile than the S&P 500. Comparatively, Ahold has a beta of 0.49, indicating that its share price is 51% less volatile than the S&P 500.

Valuation and Earnings

This table compares ThredUp and Ahold”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ThredUp	$260.03 million	2.57	-$76.99 million	($0.30)	-17.83
Ahold	$96.70 billion	0.37	$1.91 billion	€2.51	15.81

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

Summary

Ahold beats ThredUp on 9 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 Ahold

Koninklijke Ahold Delhaize N.V. operates retail food stores and e-commerce in the United States, Europe, and internationally. The company's stores offer produce, dairy, meat, deli, bakery, seafood, and frozen products; grocery, beer, and wine; floral, pet food, health and beauty care, kitchen and cookware, gardening tools, general merchandise articles, electronics, newspapers and magazines, tobacco, etc.; gasoline; and pharmacy products. It operates its supermarkets, convenience stores, and online stores under the Food Lion, Stop & Shop, The GIANT Company, Hannaford, Giant Food, FreshDirect, Albert Heijn, bol.com, Etos, Gall & Gall, Delhaize, Albert, Alfa Beta Vassilopoulos, Mega Image, Delhaize Serbia, Peapod Digital labs, and Retail Business Service brands. The company was formerly known as Koninklijke Ahold N.V. and changed its name to Koninklijke Ahold Delhaize N.V. in July 2016. Koninklijke Ahold Delhaize N.V. was founded in 1867 and is headquartered in Zaandam, the Netherlands.