ThredUp (NASDAQ:TDUP) and Krispy Kreme (NASDAQ:DNUT) Head to Head Review

ThredUp (NASDAQ:TDUP) and Krispy Kreme (NASDAQ:DNUT) are both small-cap consumer staples companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, profitability, analyst recommendations, valuation and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ThredUp	-22.41%	-77.03%	-26.15%
Krispy Kreme	-1.36%	-2.13%	-0.81%

Institutional and Insider Ownership

89.1% of ThredUp shares are owned by institutional investors. Comparatively, 81.7% of Krispy Kreme shares are owned by institutional investors. 27.0% of ThredUp shares are owned by insiders. Comparatively, 3.0% of Krispy Kreme shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares ThredUp and Krispy Kreme”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	3.59	-$76.99 million	($0.58)	-13.60
Krispy Kreme	$1.67 billion	0.34	$3.10 million	($0.13)	-25.42

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

Volatility & Risk

ThredUp has a beta of 1.73, suggesting that its share price is 73% more volatile than the S&P 500. Comparatively, Krispy Kreme has a beta of 1.29, suggesting that its share price is 29% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for ThredUp and Krispy Kreme, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ThredUp	0	1	2	0	2.67
Krispy Kreme	1	4	3	1	2.44

ThredUp currently has a consensus price target of $7.25, indicating a potential downside of 8.11%. Krispy Kreme has a consensus price target of $10.58, indicating a potential upside of 219.97%. Given Krispy Kreme’s higher possible upside, analysts plainly believe Krispy Kreme is more favorable than ThredUp.

Summary

Krispy Kreme 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 Krispy Kreme

Krispy Kreme, Inc., together with its subsidiaries, produces doughnuts in the United States, the United Kingdom, Ireland, Australia, New Zealand, Mexico, Canada, Japan, and internationally. The company operates through three segments: U.S., International, and Market Development. The company offers doughnut experiences through hot light theater and fresh shops, delivered fresh daily branded cabinets and merchandising units within grocery and convenience stores, quick service restaurants, club memberships, drug stores, and ecommerce, as well as through its branded sweet treat line comprising Krispy Kreme branded sweet treats. It also provides cookies under the Insomnia Cookies brand, cookie cakes, ice cream, cookie-wiches, and brownies; and operates Krispy Kreme company-owned shops and franchise shops. The company was formerly known as Krispy Kreme Doughnuts, Inc. and changed its name to Krispy Kreme, Inc. in May 2021. Krispy Kreme, Inc. was founded in 1937 and is based in Charlotte, North Carolina.