Contrasting eBay (EBAY) & Overstock.com (OSTK)
eBay (NASDAQ: EBAY) and Overstock.com (NASDAQ:OSTK) are both retail/wholesale companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, risk, profitability, dividends, earnings, valuation and institutional ownership.
Risk & Volatility
eBay has a beta of 1.36, indicating that its share price is 36% more volatile than the S&P 500. Comparatively, Overstock.com has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500.
This is a summary of recent ratings and target prices for eBay and Overstock.com, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
eBay presently has a consensus target price of $38.44, indicating a potential upside of 4.45%. Overstock.com has a consensus target price of $41.00, indicating a potential downside of 4.43%. Given eBay’s higher possible upside, equities analysts plainly believe eBay is more favorable than Overstock.com.
Institutional & Insider Ownership
87.2% of eBay shares are held by institutional investors. Comparatively, 43.5% of Overstock.com shares are held by institutional investors. 6.8% of eBay shares are held by insiders. Comparatively, 28.9% of Overstock.com shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares eBay and Overstock.com’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|eBay||$9.16 billion||4.30||$2.88 billion||$6.74||5.46|
|Overstock.com||$1.83 billion||0.59||-$1.70 million||($0.52)||-82.50|
eBay has higher revenue and earnings than Overstock.com. Overstock.com is trading at a lower price-to-earnings ratio than eBay, indicating that it is currently the more affordable of the two stocks.
This table compares eBay and Overstock.com’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
eBay beats Overstock.com 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.
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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