Analyzing eBay (EBAY) & CafePress (PRSS)
eBay (NASDAQ: EBAY) and CafePress (NASDAQ:PRSS) are both retail/wholesale companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, valuation, risk and earnings.
Institutional & Insider Ownership
84.8% of eBay shares are owned by institutional investors. Comparatively, 10.8% of CafePress shares are owned by institutional investors. 6.8% of eBay shares are owned by company insiders. Comparatively, 28.8% of CafePress 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 table compares eBay and CafePress’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current recommendations for eBay and CafePress, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
eBay presently has a consensus price target of $37.44, indicating a potential downside of 2.48%. CafePress has a consensus price target of $3.50, indicating a potential upside of 56.25%. Given CafePress’ higher possible upside, analysts clearly believe CafePress is more favorable than eBay.
Volatility and Risk
eBay has a beta of 1.34, indicating that its stock price is 34% more volatile than the S&P 500. Comparatively, CafePress has a beta of 0.87, indicating that its stock price is 13% less volatile than the S&P 500.
Valuation and Earnings
This table compares eBay and CafePress’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|eBay||$9.16 billion||4.49||$2.88 billion||$6.62||5.80|
|CafePress||$99.53 million||0.38||-$1.14 million||($0.42)||-5.33|
eBay has higher revenue and earnings than CafePress. CafePress is trading at a lower price-to-earnings ratio than eBay, indicating that it is currently the more affordable of the two stocks.
eBay beats CafePress on 11 of the 13 factors compared between the two stocks.
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.
CafePress Company Profile
CafePress Inc. is an online retailer of personalized products offering various gifts and accessories, including t-shirts and apparel, mugs and drinkware, and home goods, such as custom shower curtains and bed coverings. The Company conducts its business on its primary United States-based domain, CafePress.com, and also operates CafePress branded Websites for the markets in the United Kingdom, Canada and Australia. It also sells CafePress branded products through other online retail partners. Its products are customized with designs contributed through various means, including crowd-sourced user generated content, stock art licenses and licensed content relationships with entertainment companies and brands. Its facility in Louisville, Kentucky has technology and manufacturing processes that enables it to provide customized products that are individually built to order. The Company’s processes enable it to produce a range of merchandise.
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