Reviewing BBB Foods (NYSE:TBBB) and ThredUp (NASDAQ:TDUP)

BBB Foods (NYSE:TBBB) and ThredUp (NASDAQ:TDUP) are both consumer staples companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, valuation, institutional ownership, earnings, dividends, profitability and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
BBB Foods	-2.61%	-44.56%	-7.47%
ThredUp	-12.18%	-39.20%	-13.16%

Volatility and Risk

BBB Foods has a beta of -0.14, meaning that its stock price is 114% less volatile than the S&P 500. Comparatively, ThredUp has a beta of 1.72, meaning that its stock price is 72% more volatile than the S&P 500.

Earnings and Valuation

This table compares BBB Foods and ThredUp”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BBB Foods	$3.15 billion	1.41	$18.36 million	($0.84)	-46.42
ThredUp	$260.03 million	2.37	-$76.99 million	($0.30)	-16.40

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

Analyst Recommendations

This is a breakdown of recent ratings for BBB Foods and ThredUp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BBB Foods	2	2	4	0	2.25
ThredUp	1	1	2	2	2.83

BBB Foods presently has a consensus target price of $35.80, indicating a potential downside of 8.18%. ThredUp has a consensus target price of $12.50, indicating a potential upside of 154.07%. Given ThredUp’s stronger consensus rating and higher possible upside, analysts plainly believe ThredUp is more favorable than BBB Foods.

Insider & Institutional Ownership

8.4% of BBB Foods shares are held by institutional investors. Comparatively, 89.1% of ThredUp shares are held by institutional investors. 27.0% of ThredUp shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

ThredUp beats BBB Foods on 10 of the 15 factors compared between the two stocks.

About BBB Foods

BBB Foods Inc., through its subsidiaries, operates a chain of grocery retail stores in Mexico. It offers household cleaning, personal hyenine, cosmetics and beauty, pharmacy, and general merchandise products, as well as jellies and desserts, foods and drinks, pet supplies, coffee, tea, chocolates, breads, dry and frozen foods, snacks and sweets, and toilet papers and napkins. The company also provides branded, private label, and spot products. It serves low-to-middle income households through online channels. BBB Foods Inc. was incorporated in 2004 and is headquartered in Mexico City, Mexico.

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.