Critical Survey: eBay (EBAY) versus The Competition
eBay (NASDAQ: EBAY) is one of 29 publicly-traded companies in the “E-commerce & Auction Services” industry, but how does it compare to its peers? We will compare eBay to related businesses based on the strength of its dividends, profitability, risk, analyst recommendations, earnings, institutional ownership and valuation.
Risk & Volatility
eBay has a beta of 1.36, suggesting that its stock price is 36% more volatile than the S&P 500. Comparatively, eBay’s peers have a beta of 1.53, suggesting that their average stock price is 53% more volatile than the S&P 500.
This table compares eBay and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional and Insider Ownership
84.9% of eBay shares are owned by institutional investors. Comparatively, 47.7% of shares of all “E-commerce & Auction Services” companies are owned by institutional investors. 6.8% of eBay shares are owned by company insiders. Comparatively, 17.9% of shares of all “E-commerce & Auction Services” companies are owned by company 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.
Earnings & Valuation
This table compares eBay and its peers revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|eBay||$9.16 billion||$2.88 billion||5.89|
|eBay Competitors||$2.66 billion||$891.38 million||-28.75|
eBay has higher revenue and earnings than its peers. eBay is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
This is a summary of recent recommendations and price targets for eBay and its peers, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
eBay currently has a consensus price target of $37.81, indicating a potential downside of 3.03%. As a group, “E-commerce & Auction Services” companies have a potential upside of 13.25%. Given eBay’s peers stronger consensus rating and higher possible upside, analysts plainly believe eBay has less favorable growth aspects than its peers.
eBay beats its peers on 7 of the 13 factors compared.
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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