Analyzing eBay (NASDAQ:EBAY) & ZipLink (OTCMKTS:ZIPL)

ZipLink (OTCMKTS:ZIPL) and eBay (NASDAQ:EBAY) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, profitability, risk, analyst recommendations, institutional ownership, dividends and earnings.

Profitability

This table compares ZipLink and eBay’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ZipLink	N/A	N/A	N/A
eBay	19.68%	30.97%	8.78%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for ZipLink and eBay, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ZipLink	0	0	0	0	0.00
eBay	2	17	8	0	2.22

eBay has a consensus target price of $64.83, indicating a potential downside of 2.71%. Given eBay’s stronger consensus rating and higher probable upside, analysts plainly believe eBay is more favorable than ZipLink.

Valuation & Earnings

This table compares ZipLink and eBay”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ZipLink	N/A	N/A	N/A	N/A	N/A
eBay	$10.28 billion	3.02	$2.77 billion	$3.99	16.70

eBay has higher revenue and earnings than ZipLink.

Volatility and Risk

ZipLink has a beta of 32.96, indicating that its stock price is 3,196% more volatile than the S&P 500. Comparatively, eBay has a beta of 1.43, indicating that its stock price is 43% more volatile than the S&P 500.

Institutional and Insider Ownership

87.5% of eBay shares are owned by institutional investors. 57.5% of ZipLink shares are owned by insiders. Comparatively, 0.4% of eBay shares are owned 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.

Summary

eBay beats ZipLink on 8 of the 10 factors compared between the two stocks.

About ZipLink

This record represents the public shell of ZipLink, Inc. In November 2000, ZipLink, Inc. suspended its operations and announced the lay off of substantially all of its employees except those necessary to wind down operations. Ziplink, Inc. operated as a wholesale connectivity provider in North America for the Business-to-Business marketplace, including Internet service providers, competitive local exchange carriers, Web appliance vendors, and PC manufacturers and distributors, as of September 30, 2000. ZipLink also offered a range of Internet connectivity services for Internet appliances, including Internet access and subscriber authentication. The company was founded in 1995 and is based in Lowell, Massachusetts.

About eBay

eBay Inc., together with its subsidiaries, operates marketplace platforms that connect buyers and sellers in the United States, the United Kingdom, China, Germany, and internationally. The company’s marketplace platform includes its online marketplace at ebay.com, off-platform businesses, and the eBay suite of mobile apps. Its platforms enable users to list, sell, and buy various products. The company was founded in 1995 and is headquartered in San Jose, California.