Jumei International Holding Limited (NYSE: JMEI) and Overstock.com (NASDAQ:OSTK) are both small-cap retail/wholesale companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, profitability, valuation and risk.

Institutional and Insider Ownership

27.0% of Jumei International Holding Limited shares are owned by institutional investors. Comparatively, 44.3% of Overstock.com shares are owned by institutional investors. 28.9% of Overstock.com shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Jumei International Holding Limited and Overstock.com’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Jumei International Holding Limited N/A N/A N/A
Overstock.com -0.73% -6.36% -2.38%

Risk and Volatility

Jumei International Holding Limited has a beta of 1.57, meaning that its share price is 57% more volatile than the S&P 500. Comparatively, Overstock.com has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Jumei International Holding Limited and Overstock.com, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Jumei International Holding Limited 0 0 0 0 N/A
Overstock.com 0 0 2 0 3.00

Overstock.com has a consensus target price of $26.50, indicating a potential upside of 9.28%. Given Overstock.com’s higher probable upside, analysts plainly believe Overstock.com is more favorable than Jumei International Holding Limited.

Valuation & Earnings

This table compares Jumei International Holding Limited and Overstock.com’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Jumei International Holding Limited $939.88 million 0.28 $24.42 million N/A N/A
Overstock.com $1.83 billion 0.33 -$1.70 million ($0.52) -46.63

Jumei International Holding Limited has higher revenue, but lower earnings than Overstock.com.

Summary

Overstock.com beats Jumei International Holding Limited on 6 of the 11 factors compared between the two stocks.

Jumei International Holding Limited Company Profile

Jumei International Holding Limited is an online retailer of beauty products. The Company’s sales formats consist of curated sales, online shopping mall and flash sales. The Company’s Jumei Global sales channel is part of its curated sales format. The Company’s curated sales format includes branded beauty products, baby, children and maternity products, light luxury products and health supplements. Its online shopping mall format includes branded beauty products. Its flash sales format includes branded apparel and other lifestyle products. Its Jumei Global offers Chinese consumers convenient access to products sourced directly from overseas and allows its consumers to make payments in Renminbi. Jumei Global offers branded beauty products, baby, children and maternity products, light luxury products and health supplements from South Korea, Japan, Taiwan, the United States and European countries. It also offers exclusive products, including products under its private label brands.

Overstock.com Company Profile

Overstock.com, Inc. is an online retailer and incubator of blockchain technology. Through its online retail business, the Company offers a range of price-competitive brand name, non-brand name and closeout products, including furniture, home decor, bedding and bath, housewares, jewelry and watches, apparel and designer accessories, health and beauty products, electronics and computers, and sporting goods. It operates Retail and Medici businesses. Its Retail business consists of its Direct and Partner segments. Its Other segment consists of Medici. The Company also sells various books, magazines, compact discs (CDs), digital versatile discs (DVDs) and video games. The Company sells these products and services through its Internet Websites located at www.overstock.com, www.o.co and www.o.biz. The Company’s other offerings include Worldstock Fair Trade, Main Street Revolution, Farmers Market, Pet Adoptions, Insurance and Supplier Oasis.

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