Comparing Secoo (SECO) and Overstock.com (OSTK)

Secoo (NASDAQ: SECO) and Overstock.com (NASDAQ:OSTK) are both small-cap retail/wholesale companies, but which is the superior business? We will compare the two companies based on the strength of their risk, valuation, earnings, dividends, institutional ownership, profitability and analyst recommendations.

Analyst Ratings

This is a summary of current ratings and price targets for Secoo and Overstock.com, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Secoo 0 0 1 0 3.00
Overstock.com 0 0 2 0 3.00

Secoo currently has a consensus target price of $18.00, suggesting a potential upside of 45.04%. Overstock.com has a consensus target price of $67.50, suggesting a potential upside of 15.19%. Given Secoo’s higher possible upside, research analysts clearly believe Secoo is more favorable than Overstock.com.

Valuation and Earnings

This table compares Secoo and Overstock.com’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Secoo $382.60 million 0.42 -$6.59 million N/A N/A
Overstock.com $1.80 billion 0.81 $12.52 million ($0.43) -136.28

Overstock.com has higher revenue and earnings than Secoo.

Profitability

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

Net Margins Return on Equity Return on Assets
Secoo N/A N/A N/A
Overstock.com -0.61% -4.95% -1.88%

Insider & Institutional Ownership

24.8% of Secoo shares are held by institutional investors. Comparatively, 47.6% of Overstock.com shares are held by institutional investors. 28.9% of Overstock.com shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Overstock.com beats Secoo on 6 of the 10 factors compared between the two stocks.

About Secoo

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.

About Overstock.com

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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