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

Analyst Recommendations

This is a summary of current recommendations for Netshoes Cayman and Liberty Interactive, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Netshoes Cayman 0 1 3 0 2.75
Liberty Interactive 1 1 6 0 2.63

Netshoes Cayman presently has a consensus price target of $21.88, suggesting a potential upside of 258.61%. Liberty Interactive has a consensus price target of $30.50, suggesting a potential upside of 22.20%. Given Netshoes Cayman’s stronger consensus rating and higher possible upside, analysts clearly believe Netshoes Cayman is more favorable than Liberty Interactive.

Valuation and Earnings

This table compares Netshoes Cayman and Liberty Interactive’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Netshoes Cayman $533.75 million 0.35 -$46.35 million N/A N/A
Liberty Interactive $10.22 billion 0.98 $1.24 billion $1.10 22.69

Liberty Interactive has higher revenue and earnings than Netshoes Cayman.

Profitability

This table compares Netshoes Cayman and Liberty Interactive’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
Liberty Interactive 5.01% 11.03% 3.85%

Insider & Institutional Ownership

61.5% of Netshoes Cayman shares are owned by institutional investors. Comparatively, 97.1% of Liberty Interactive shares are owned by institutional investors. 10.7% of Liberty Interactive shares are owned by 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.

Summary

Liberty Interactive beats Netshoes Cayman on 9 of the 11 factors compared between the two stocks.

Netshoes Cayman Company Profile

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.

Liberty Interactive Company Profile

Liberty Interactive Corporation owns interests in subsidiaries and other companies, which are primarily engaged in the video and online commerce industries. Through its subsidiaries and affiliates, the Company operates in North America, Europe and Asia. Its principal businesses and assets include its subsidiaries QVC, Inc. (QVC), zulily, llc (zulily) and and Evite, Inc. (Evite). The Company’s segments include QVC, zulily, and Corporate and other. Evite is an online invitation and social event planning service on the Web. As of December 31, 2016, QVC marketed and sold a range of consumer products primarily through live merchandise-focused televised shopping programs distributed to approximately 362 million households each day and through its Websites, including QVC.com, and other interactive media, such as mobile applications. Zulily’s merchandise includes women’s, children’s and men’s apparel, children’s merchandise and other products, such as kitchen accessories and home decor.

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