Critical Review: CafePress (PRSS) versus Secoo (SECO)

CafePress (NASDAQ: PRSS) and Secoo (NASDAQ:SECO) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, dividends, profitability, earnings, analyst recommendations, valuation and institutional ownership.

Insider & Institutional Ownership

26.8% of CafePress shares are held by institutional investors. Comparatively, 24.8% of Secoo shares are held by institutional investors. 17.3% of CafePress shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares CafePress and Secoo’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CafePress -7.63% -16.72% -13.02%
Secoo N/A N/A N/A

Analyst Ratings

This is a breakdown of current ratings and recommmendations for CafePress and Secoo, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CafePress 0 1 0 0 2.00
Secoo 0 0 1 0 3.00

CafePress presently has a consensus price target of $3.50, suggesting a potential upside of 100.00%. Secoo has a consensus price target of $18.00, suggesting a potential upside of 66.98%. Given CafePress’ higher possible upside, equities analysts plainly believe CafePress is more favorable than Secoo.

Earnings & Valuation

This table compares CafePress and Secoo’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CafePress $102.21 million 0.29 -$26.47 million ($0.44) -3.98
Secoo $382.60 million 0.36 -$6.59 million N/A N/A

Secoo has higher revenue and earnings than CafePress.

Summary

Secoo beats CafePress on 8 of the 11 factors compared between the two stocks.

CafePress Company Profile

CafePress Inc. is an online retailer of personalized products offering various gifts and accessories, including t-shirts and apparel, mugs and drinkware, and home goods, such as custom shower curtains and bed coverings. The Company conducts its business on its primary United States-based domain, CafePress.com, and also operates CafePress branded Websites for the markets in the United Kingdom, Canada and Australia. It also sells CafePress branded products through other online retail partners. Its products are customized with designs contributed through various means, including crowd-sourced user generated content, stock art licenses and licensed content relationships with entertainment companies and brands. Its facility in Louisville, Kentucky has technology and manufacturing processes that enables it to provide customized products that are individually built to order. The Company’s processes enable it to produce a range of merchandise.

Secoo Company Profile

Secoo Holding Limited is an online integrated platform company. The Company offers an integrated online and offline shopping platform, which consists of its Secoo.com Website, mobile applications and offline experience centers. The Company offers a range of products including watches, bags, clothing, footwear, jewelry, accessories, menswear, children’s wear, sportswear, cosmetics and skin care, automobile, home goods, lifestyle services, lifestyle services and high-end Chinese original products. The Company’s online platform facilitates easy product selection, order processing and convenient payment methods, such as Secoo Check, which allows customers to make payments for its merchandise products in installments on its online platform directly.

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