Points International (NASDAQ: PCOM) and eBay (NASDAQ:EBAY) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, valuation, profitabiliy and institutional ownership.

Risk and Volatility

Points International has a beta of 1.08, meaning that its share price is 8% more volatile than the S&P 500. Comparatively, eBay has a beta of 1.37, meaning that its share price is 37% more volatile than the S&P 500.

Valuation and Earnings

This table compares Points International and eBay’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Points International $330.94 million 0.40 $9.54 million ($0.10) -88.90
eBay $9.06 billion 4.20 $2.94 billion $6.98 5.03

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Points International and eBay, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Points International 0 0 3 0 3.00
eBay 1 20 14 0 2.37

Points International currently has a consensus price target of $13.50, suggesting a potential upside of 51.86%. eBay has a consensus price target of $35.91, suggesting a potential upside of 2.25%. Given Points International’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Points International is more favorable than eBay.

Institutional & Insider Ownership

37.9% of Points International shares are held by institutional investors. Comparatively, 85.0% of eBay shares are held by institutional investors. 6.8% of eBay shares are held 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.

Profitability

This table compares Points International and eBay’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Points International -0.47% 7.94% 3.45%
eBay 86.31% 20.44% 8.12%

Summary

eBay beats Points International on 11 of the 14 factors compared between the two stocks.

Points International Company Profile

Points International Ltd. (Points) provides a range of e-commerce and technology services to loyalty program operators using a common infrastructure. These services include a range of white label or private branded e-commerce services (Loyalty Currency Services) that enable the sale of loyalty currencies (such as frequent flyer miles, hotel points and credit card points), both retail and wholesale, and support the loyalty program consumer offerings and their back end operations. The Company offers the consumer-focused Points Loyalty Wallet that allows users to track, manage and access multiple loyalty rewards programs through the Points.com Website. It also offers Points Travel, which is private label travel e-commerce platform designed specifically for the loyalty industry. The Company operates the PointsHound.com Website, a hotel booking engine and loyalty currency aggregator built specifically for frequent travelers.

eBay Company Profile

eBay Inc. (eBay) is a commerce company, which operates through its Marketplace, StubHub and Classifieds platforms. The Company connects buyers and sellers around the world. Its platforms enable sellers around the world to organize and offer their inventory for sale, and buyers to find and purchase it. Its platforms are accessible through an online experience (desktop and laptop computers), from mobile devices (smartphones and tablets) and by application programming interface (API) (platform access for third-party software developers). The Company’s Marketplace platforms include its online marketplace located at www.ebay.com, localized counterparts and the eBay mobile applications. The Company’s StubHub platforms include its online ticket platform located at www.stubhub.com, the StubHub mobile applications and Ticketbis. The Company’s Classifieds platforms include a collection of brands, such as Mobile.de, Kijiji, Gumtree, Marktplaats, eBay Kleinanzeigen and others.

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