Analyzing RDE (NASDAQ:GIFT) and ThredUp (NASDAQ:TDUP)

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

Risk and Volatility

RDE has a beta of -0.73, meaning that its share price is 173% less volatile than the S&P 500. Comparatively, ThredUp has a beta of 1.66, meaning that its share price is 66% more volatile than the S&P 500.

Valuation and Earnings

This table compares RDE and ThredUp”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RDE	$97.01 million	0.28	N/A	N/A	N/A
ThredUp	$322.02 million	0.80	-$71.25 million	($0.64)	-3.53

RDE has higher earnings, but lower revenue than ThredUp.

Analyst Ratings

This is a breakdown of current ratings for RDE and ThredUp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RDE	0	0	0	0	0.00
ThredUp	0	1	3	0	2.75

ThredUp has a consensus price target of $3.50, suggesting a potential upside of 54.87%. Given ThredUp’s stronger consensus rating and higher probable upside, analysts clearly believe ThredUp is more favorable than RDE.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
RDE	-21.08%	-76.24%	-46.38%
ThredUp	-22.16%	-78.74%	-29.58%

Insider & Institutional Ownership

89.1% of ThredUp shares are owned by institutional investors. 20.5% of RDE shares are owned by insiders. Comparatively, 34.4% of ThredUp shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

ThredUp beats RDE on 9 of the 11 factors compared between the two stocks.

About RDE

RDE, Inc. owns and operates a restaurant deal space in the United States. The company operates Restaurant.com that connects digital consumers, businesses, and communities with dining and merchant deal options at approximately 182,500 restaurants and retailers to approximately 7.8 million customers. It sells discount certificates for restaurants, as well as complementary entertainment and travel offerings, and consumer products on behalf of third-party merchants. The company is based in Schaumburg, Illinois.

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.