Financial Contrast: Geeknet (GKNT) & Jumei International (JMEI)

Geeknet (NASDAQ: GKNT) and Jumei International (NYSE:JMEI) are both small-cap technology companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, earnings, institutional ownership, valuation, dividends and profitability.

Risk & Volatility

Geeknet has a beta of 0.28, meaning that its share price is 72% less volatile than the S&P 500. Comparatively, Jumei International has a beta of 1.61, meaning that its share price is 61% more volatile than the S&P 500.

Insider and Institutional Ownership

25.5% of Jumei International shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Geeknet and Jumei International’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Geeknet N/A N/A N/A ($1.48) -13.50
Jumei International $904.10 million 0.64 $20.48 million $0.11 35.82

Jumei International has higher revenue and earnings than Geeknet. Geeknet is trading at a lower price-to-earnings ratio than Jumei International, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Geeknet and Jumei International, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Geeknet 0 0 0 0 N/A
Jumei International 0 0 0 0 N/A

Profitability

This table compares Geeknet and Jumei International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Geeknet -20.58% -25.85% -19.84%
Jumei International N/A N/A N/A

Summary

Jumei International beats Geeknet on 8 of the 8 factors compared between the two stocks.

About Geeknet

Geeknet, Inc. (Geeknet) sells collectibles, apparel, gadgets, electronics, toys and other retail products for technology enthusiasts and general consumers through the ThinkGeek Website and exclusive products to the Company’s wholesale channel customers. The Company has three segments: Website, Wholesale and ThinkGeek Solutions. The ThinkGeek Solutions segment has been aggregated into the Website segment. The Website segment sells geek-themed retail products and video game-themed merchandise through the ThinkGeek Website and through the ThinkGeek Solutions Web-stores. The Wholesale segment sells primarily exclusive GeekLabs (the in-house product development team) products to brick-and-mortar retailers. The Company along with its subsidiaries, operates a business aimed at the global geek community, which includes technology enthusiasts, pop-culture aficionados and other fans. ThinkGeek, Inc. and ThinkGeek Solutions, Inc. are its two wholly owned subsidiaries.

About Jumei International

Jumei International Holding Limited is an online retailer of beauty products. The Company’s sales formats consist of curated sales, online shopping mall and flash sales. The Company’s Jumei Global sales channel is part of its curated sales format. The Company’s curated sales format includes branded beauty products, baby, children and maternity products, light luxury products and health supplements. Its online shopping mall format includes branded beauty products. Its flash sales format includes branded apparel and other lifestyle products. Its Jumei Global offers Chinese consumers convenient access to products sourced directly from overseas and allows its consumers to make payments in Renminbi. Jumei Global offers branded beauty products, baby, children and maternity products, light luxury products and health supplements from South Korea, Japan, Taiwan, the United States and European countries. It also offers exclusive products, including products under its private label brands.

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