Mercari vs ThredUp Which Is More Reliable?

Mercari and ThredUp are two popular online marketplace platforms that have experienced rapid growth in recent years. Mercari, a Japanese-based company, allows users to buy and sell a wide range of items, while ThredUP focuses specifically on secondhand clothing and accessories. Both companies have seen their stock prices fluctuate, with Mercari's stock showing strong performance, while ThredUp's stock has faced challenges. Investors are closely monitoring these two companies to assess their potential for future growth and profitability in the competitive e-commerce market.

Mercari or ThredUp?

When comparing Mercari and ThredUp, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Mercari and ThredUp.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Mercari has a dividend yield of -%, while ThredUp has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Mercari reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, ThredUp reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Mercari P/E ratio at 12.55 and ThredUp's P/E ratio at -2.89. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Mercari P/B ratio is 2.18 while ThredUp's P/B ratio is 2.92.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Mercari has seen a 5-year revenue growth of 2.46%, while ThredUp's is 0.84%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Mercari's ROE at 19.25% and ThredUp's ROE at -79.15%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $6.06 for Mercari and $1.73 for ThredUp. Over the past year, Mercari's prices ranged from $5.49 to $9.60, with a yearly change of 74.86%. ThredUp's prices fluctuated between $0.50 and $2.60, with a yearly change of 416.90%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.