Arhaus (NASDAQ:ARHS – Get Free Report) and ThredUp (NASDAQ:TDUP – Get Free Report) 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 valuation, risk, profitability, institutional ownership, analyst recommendations, dividends and earnings.
Insider & Institutional Ownership
27.9% of Arhaus shares are owned by institutional investors. Comparatively, 89.1% of ThredUp shares are owned by institutional investors. 1.2% of Arhaus shares are owned by insiders. Comparatively, 23.1% of ThredUp shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Arhaus and ThredUp, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Arhaus | 0 | 4 | 5 | 1 | 2.70 |
| ThredUp | 1 | 0 | 4 | 0 | 2.60 |
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% |
Earnings and Valuation
This table compares Arhaus and ThredUp”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Arhaus | $1.38 billion | 1.00 | $67.26 million | $0.50 | 19.38 |
| ThredUp | $310.81 million | 1.05 | -$20.21 million | ($0.17) | -14.59 |
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.
Volatility and Risk
Arhaus has a beta of 2.29, indicating that its share price is 129% more 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.
Summary
Arhaus beats ThredUp on 11 of the 15 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.
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