Head to Head Contrast: Arhaus (NASDAQ:ARHS) and ThredUp (NASDAQ:TDUP)

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

Valuation & Earnings

This table compares Arhaus and ThredUp”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Arhaus	$1.38 billion	0.74	$67.26 million	$0.50	14.40
ThredUp	$310.81 million	1.04	-$20.21 million	($0.17)	-14.47

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Arhaus	4.91%	17.23%	4.94%
ThredUp	-6.65%	-37.30%	-13.03%

Volatility and Risk

Arhaus has a beta of 2.3, indicating that its stock price is 130% more volatile than the S&P 500. Comparatively, ThredUp has a beta of 1.97, indicating that its stock price is 97% more volatile than the S&P 500.

Insider & Institutional Ownership

27.9% of Arhaus shares are held by institutional investors. Comparatively, 89.1% of ThredUp shares are held by institutional investors. 1.2% of Arhaus shares are held by company insiders. Comparatively, 23.1% of ThredUp shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and target prices for Arhaus and ThredUp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arhaus	0	7	4	0	2.36
ThredUp	1	0	4	0	2.60

Arhaus currently has a consensus price target of $10.12, indicating a potential upside of 40.62%. ThredUp has a consensus price target of $6.55, indicating a potential upside of 166.26%. Given ThredUp’s stronger consensus rating and higher probable upside, analysts clearly believe ThredUp is more favorable than Arhaus.

Summary

Arhaus beats ThredUp on 8 of the 13 factors compared between the two stocks.

About Arhaus

Arhaus, Inc. operates as a lifestyle brand and premium retailer in the home furnishings market in the United States. It provides merchandise assortments across various categories, including furniture, lighting, textiles, décor, and outdoor. The company's furniture products comprise bedroom, dining room, living room, and home office furnishings, which includes sofas, dining tables and chairs, accent chairs, console and coffee tables, beds, headboards, dressers, desks, bookcases, modular storage, and other items; and outdoor products, such as outdoor dining tables, chairs, chaises and other furniture, lighting, textiles, décor, umbrellas, and fire pits. It offers lighting products, including various distinct and artistic lighting fixtures comprising chandeliers, pendants, table and floor lamps, and sconces; textile products, such as handcrafted indoor and outdoor rugs, bed linens, and pillows and throws; and décor products, including various wall art to mirrors, vases to candles, and other decorative accessories. The company distributes its products through an omni-channel model comprising showrooms, e-commerce platform, print and digital media, and in-home designer services. Arhaus, Inc. was founded in 1986 and is headquartered in Boston Heights, Ohio.

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.