eBay (NASDAQ: EBAY) and Cnova NV (NASDAQ:CNV) are both retail/wholesale companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, dividends, analyst recommendations, institutional ownership, valuation, risk and earnings.

Profitability

This table compares eBay and Cnova NV’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
eBay 80.93% 17.50% 7.32%
Cnova NV -3.30% N/A -6.49%

Risk and Volatility

eBay has a beta of 1.36, indicating that its stock price is 36% more volatile than the S&P 500. Comparatively, Cnova NV has a beta of 2.64, indicating that its stock price is 164% more volatile than the S&P 500.

Institutional and Insider Ownership

85.7% of eBay shares are owned by institutional investors. Comparatively, 3.0% of Cnova NV shares are owned by institutional investors. 6.8% of eBay shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares eBay and Cnova NV’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
eBay $9.16 billion 4.00 $2.88 billion $6.62 5.17
Cnova NV N/A N/A N/A ($0.94) -5.64

eBay has higher revenue and earnings than Cnova NV. Cnova NV 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 summary of recent recommendations for eBay and Cnova NV, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
eBay 2 18 15 0 2.37
Cnova NV 0 1 0 0 2.00

eBay currently has a consensus target price of $37.17, suggesting a potential upside of 8.55%. Given eBay’s stronger consensus rating and higher possible upside, equities research analysts plainly believe eBay is more favorable than Cnova NV.

Summary

eBay beats Cnova NV on 10 of the 11 factors compared between the two stocks.

About eBay

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.

About Cnova NV

Cnova N.V. is an e-commerce company with its two markets in France and Brazil. The Company offers differentiated delivery and payment solutions. It operates through three segments: Cdiscount France, Cdiscount International and Cnova Brazil. The Cdiscount France segment is engaged in the retail sales of consumer products through Cdiscount.com and specialized Websites in France. The Cdiscount International segment is engaged in retail sales of consumer products through Websites created by Cdiscount S.A. (Cdiscount) outside of France. The Cnova Brazil segment is engaged in retail sales of consumer products through Websites in Brazil, including Extra.com.br, PontoFrio.com.br, CasasBahia.com.br, Barateiro.com.br, PartiuViagens.com.br, and wholesale activities and E-Hub. As of December 31, 2015, it offered over 29 million product offerings on its sites through its direct sales and marketplace businesses across various categories, such as consumer electronics, home appliances and computers.

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