Netshoes Cayman (NYSE: NETS) and Amazon.com (NASDAQ:AMZN) are both consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.

Profitability

This table compares Netshoes Cayman and Amazon.com’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Netshoes Cayman N/A N/A N/A
Amazon.com 1.20% 8.67% 2.10%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Netshoes Cayman and Amazon.com, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Netshoes Cayman 0 1 3 0 2.75
Amazon.com 0 2 48 0 2.96

Netshoes Cayman currently has a consensus price target of $21.88, indicating a potential upside of 247.22%. Amazon.com has a consensus price target of $1,158.99, indicating a potential upside of 0.24%. Given Netshoes Cayman’s higher probable upside, analysts plainly believe Netshoes Cayman is more favorable than Amazon.com.

Earnings & Valuation

This table compares Netshoes Cayman and Amazon.com’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Netshoes Cayman $533.75 million 0.37 -$46.35 million N/A N/A
Amazon.com $135.99 billion 4.10 $2.37 billion $3.94 293.44

Amazon.com has higher revenue and earnings than Netshoes Cayman.

Institutional & Insider Ownership

64.0% of Netshoes Cayman shares are held by institutional investors. Comparatively, 59.8% of Amazon.com shares are held by institutional investors. 17.7% of Amazon.com shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Amazon.com beats Netshoes Cayman on 9 of the 11 factors compared between the two stocks.

About Netshoes Cayman

Netshoes (Cayman) Limited is a sports and lifestyle online retailer in Latin America. The Company focuses on offering an online consumer platform in Latin America. The Company operates through two segments: Brazil and International. The Company operates in Brazil, Argentina, and Mexico. The Brazil segment consists of retail sales of consumer products from all of its verticals (which includes sales of sporting goods and related garments, as well as fashion and beauty goods) carried out through its sites Netshoes.com.br and Zattini.com.br and third-party sites that it manages, as well as its business to business offline operation. The International segment consists of retail sales of consumer products (mainly sporting goods and related garments) from its sites Netshoes.com.ar and Netshoes.com.mx in Argentina and Mexico.

About Amazon.com

Amazon.com, Inc. offers a range of products and services through its Websites. The Company operates through three segments: North America, International and Amazon Web Services (AWS). The Company’s products include merchandise and content that it purchases for resale from vendors and those offered by third-party sellers. It also manufactures and sells electronic devices. The Company, through its subsidiary, Whole Foods Market, Inc., offers healthy and organic food and staples across its stores. The Company also offers a range of products like whole trade bananas, organic avocados, organic large brown eggs, organic responsibly-farmed salmon and tilapia, organic baby kale and baby lettuce, animal-welfare-rated 85% lean ground beef, creamy and crunchy almond butter, organic gala and fuji apples, organic rotisserie chicken.

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