Winmark (NASDAQ:WINA – Get Free Report) and ThredUp (NASDAQ:TDUP – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, dividends, profitability, earnings, analyst recommendations, valuation and institutional ownership.
Profitability
This table compares Winmark and ThredUp’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Winmark | 47.09% | -99.47% | 103.54% |
| ThredUp | -6.65% | -37.30% | -13.03% |
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Winmark and ThredUp, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Winmark | 0 | 1 | 0 | 0 | 2.00 |
| ThredUp | 1 | 0 | 4 | 0 | 2.60 |
Valuation and Earnings
This table compares Winmark and ThredUp”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Winmark | $86.06 million | 12.17 | $41.65 million | $11.02 | 26.48 |
| ThredUp | $310.81 million | 1.05 | -$20.21 million | ($0.17) | -14.59 |
Winmark has higher earnings, but lower revenue than ThredUp. ThredUp is trading at a lower price-to-earnings ratio than Winmark, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Winmark has a beta of 0.57, indicating that its share price is 43% less volatile than the S&P 500. Comparatively, ThredUp has a beta of 2.11, indicating that its share price is 111% more volatile than the S&P 500.
Insider & Institutional Ownership
73.3% of Winmark shares are held by institutional investors. Comparatively, 89.1% of ThredUp shares are held by institutional investors. 10.4% of Winmark shares are held by insiders. Comparatively, 23.1% of ThredUp shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Summary
ThredUp beats Winmark on 8 of the 14 factors compared between the two stocks.
About Winmark
Winmark Corporation, a resale company operates as a franchisor for small business in the United States and Canada. The company franchises retail stores concepts that buy, sell and trade merchandise. It also operates middle-market equipment leasing business. In addition, the company buys and sells used clothing and accessories geared toward the teenage and young adult market under Plato’s Closet brand; and operates stores which buys and sells used and new children’s clothing, toys, furniture, equipment, and accessories primarily to parents of children ages infant to 12 years under the Once Upon A Child brand. Further, it buys, sells, trades in, and used and new sporting goods, equipment, and accessories for various athletic activities including team sports, such as baseball/softball, hockey, football, lacrosse, and soccer, as well as fitness, ski/snowboard, golf, and others under the Play It Again Sports brand; and buys and sells used women’s apparel, shoes, and accessories under the Style Encore brand. Additionally, the company buys, sells, trades in, and used and new musical instruments, speakers, amplifiers, music-related electronics, and related accessories under the Music Go Round brand. Winmark Corporation was incorporated in 1988 and is headquartered in Minneapolis, Minnesota.
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.
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