ThredUp (NASDAQ:TDUP – Get Free Report) and Clorox (NYSE:CLX – Get Free Report) are both consumer staples companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, earnings, risk, profitability, analyst recommendations, institutional ownership and dividends.
Analyst Ratings
This is a breakdown of recent ratings and target prices for ThredUp and Clorox, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ThredUp | 1 | 1 | 3 | 2 | 2.86 |
| Clorox | 5 | 12 | 1 | 0 | 1.78 |
ThredUp presently has a consensus price target of $12.50, suggesting a potential upside of 67.11%. Clorox has a consensus price target of $125.69, suggesting a potential upside of 21.42%. Given ThredUp’s stronger consensus rating and higher probable upside, equities analysts clearly believe ThredUp is more favorable than Clorox.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ThredUp | $260.03 million | 3.60 | -$76.99 million | ($0.30) | -24.93 |
| Clorox | $6.77 billion | 1.86 | $810.00 million | $6.37 | 16.25 |
Clorox has higher revenue and earnings than ThredUp. ThredUp is trading at a lower price-to-earnings ratio than Clorox, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares ThredUp and Clorox’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% |
| Clorox | 11.40% | 377.86% | 17.35% |
Institutional and Insider Ownership
89.1% of ThredUp shares are owned by institutional investors. Comparatively, 78.5% of Clorox shares are owned by institutional investors. 27.0% of ThredUp shares are owned by company insiders. Comparatively, 0.6% of Clorox shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Risk and Volatility
ThredUp has a beta of 1.7, meaning that its stock price is 70% more volatile than the S&P 500. Comparatively, Clorox has a beta of 0.52, meaning that its stock price is 48% less volatile than the S&P 500.
Summary
ThredUp beats Clorox on 8 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 Clorox
The Clorox Company manufactures and markets consumer and professional products worldwide. It operates through four segments: Health and Wellness, Household, Lifestyle, and International. The Health and Wellness segment offers cleaning products, such as laundry additives and home care products primarily under the Clorox, Clorox2, Scentiva, Pine-Sol, Liquid-Plumr, Tilex, and Formula 409 brands; professional cleaning and disinfecting products under the CloroxPro and Clorox Healthcare brands; professional food service products under the Hidden Valley brand; and vitamins, minerals and supplement products under the RenewLife, Natural Vitality, NeoCell, and Rainbow Light brands in the United States. The Household segment provides cat litter products under the Fresh Step and Scoop Away brands; bags and wraps under the Glad brand; and grilling products under the Kingsford brand in the United States. The Lifestyle segment offers dressings, dips, seasonings, and sauces primarily under the Hidden Valley brand; natural personal care products under the Burt's Bees brand; and water-filtration products under the Brita brand in the United States. The International segment provides laundry additives; home care products; water-filtration systems; digestive health products; grilling products; cat litter products; food products; bags and wraps; natural personal care products; and professional cleaning and disinfecting products internationally primarily under the Clorox, Ayudin, Clorinda, Poett, Pine-Sol, Glad, Brita, RenewLife, Ever Clean and Burt's Bees brands. It sells its products primarily through mass retailers; grocery outlets; warehouse clubs; dollar stores; home hardware centers; drug, pet, and military stores; third-party and owned e-commerce channels; and distributors, as well as a direct sales force The Clorox Company was founded in 1913 and is headquartered in Oakland, California.
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