Wayfair (W) versus Liberty Interactive Corporation (QVCA) Financial Analysis
Wayfair (NYSE: W) and Liberty Interactive Corporation (NASDAQ:QVCA) are both mid-cap retail/wholesale companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, earnings, valuation, profitabiliy, dividends, institutional ownership and analyst recommendations.
Earnings & Valuation
This table compares Wayfair and Liberty Interactive Corporation’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Wayfair||$3.59 billion||1.85||-$166.48 million||($2.46)||-31.19|
|Liberty Interactive Corporation||$10.17 billion||1.03||$1.78 billion||$0.99||23.52|
Liberty Interactive Corporation has higher revenue and earnings than Wayfair. Wayfair is trading at a lower price-to-earnings ratio than Liberty Interactive Corporation, indicating that it is currently the more affordable of the two stocks.
This table compares Wayfair and Liberty Interactive Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Liberty Interactive Corporation||4.59%||9.98%||3.42%|
Institutional and Insider Ownership
89.5% of Liberty Interactive Corporation shares are owned by institutional investors. 63.9% of Wayfair shares are owned by company insiders. Comparatively, 10.7% of Liberty Interactive Corporation shares are owned 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.
This is a summary of recent ratings and price targets for Wayfair and Liberty Interactive Corporation, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Liberty Interactive Corporation||0||1||9||0||2.90|
Wayfair currently has a consensus target price of $63.32, suggesting a potential downside of 17.49%. Liberty Interactive Corporation has a consensus target price of $30.00, suggesting a potential upside of 28.87%. Given Liberty Interactive Corporation’s stronger consensus rating and higher probable upside, analysts plainly believe Liberty Interactive Corporation is more favorable than Wayfair.
Risk and Volatility
Wayfair has a beta of 1.06, suggesting that its share price is 6% more volatile than the S&P 500. Comparatively, Liberty Interactive Corporation has a beta of 1.22, suggesting that its share price is 22% more volatile than the S&P 500.
Liberty Interactive Corporation beats Wayfair on 10 of the 12 factors compared between the two stocks.
Wayfair Inc. (Wayfair) offers browsing, merchandising and product discovery for a range of products from various suppliers. The Company operates through two segments: U.S. and International. The U.S. segment consists of amounts earned through product sales through the Company’s five sites in the United States and through sites operated by third parties in the United States. The International segment consists of amounts earned through product sales through its international sites. It has an online selection of furniture, decor, decorative accents, housewares, seasonal decor and other home goods. As of December 31, 2016, it had offered five sites, including Websites, mobile-optimized Websites and mobile applications: Wayfair, Joss & Main, AllModern, DwellStudio and Birch Lane. Wayfair is an online destination for all things home. Birch Lane offers a collection of furnishings and home decor. Its sites feature certain products under its house brands, such as Three Posts and Mercury Row.
About Liberty Interactive Corporation
Liberty Interactive Corporation owns interests in subsidiaries and other companies, which are primarily engaged in the video and online commerce industries. Through its subsidiaries and affiliates, the Company operates in North America, Europe and Asia. Its principal businesses and assets include its subsidiaries QVC, Inc. (QVC), zulily, llc (zulily) and and Evite, Inc. (Evite). The Company’s segments include QVC, zulily, and Corporate and other. Evite is an online invitation and social event planning service on the Web. As of December 31, 2016, QVC marketed and sold a range of consumer products primarily through live merchandise-focused televised shopping programs distributed to approximately 362 million households each day and through its Websites, including QVC.com, and other interactive media, such as mobile applications. Zulily’s merchandise includes women’s, children’s and men’s apparel, children’s merchandise and other products, such as kitchen accessories and home decor.
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