Critical Survey: Global-e Online (NASDAQ:GLBE) versus eBay (NASDAQ:EBAY)

eBay (NASDAQ:EBAY) and Global-e Online (NASDAQ:GLBE) are both retail/wholesale companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, analyst recommendations, risk, dividends, earnings, institutional ownership and profitability.

Risk and Volatility

eBay has a beta of 1.35, indicating that its stock price is 35% more volatile than the S&P 500. Comparatively, Global-e Online has a beta of 1.24, indicating that its stock price is 24% more volatile than the S&P 500.

Profitability

This table compares eBay and Global-e Online’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
eBay	20.37%	41.94%	11.09%
Global-e Online	0.82%	0.81%	0.59%

Insider and Institutional Ownership

87.5% of eBay shares are owned by institutional investors. Comparatively, 94.6% of Global-e Online shares are owned by institutional investors. 0.6% of eBay shares are owned by company insiders. Comparatively, 11.6% of Global-e Online shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations for eBay and Global-e Online, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
eBay	2	20	14	1	2.38
Global-e Online	2	0	10	1	2.77

eBay currently has a consensus price target of $94.41, indicating a potential upside of 11.89%. Global-e Online has a consensus price target of $49.91, indicating a potential upside of 26.67%. Given Global-e Online’s stronger consensus rating and higher probable upside, analysts clearly believe Global-e Online is more favorable than eBay.

Valuation and Earnings

This table compares eBay and Global-e Online”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
eBay	$10.28 billion	3.71	$1.98 billion	$4.60	18.34
Global-e Online	$752.76 million	8.88	-$75.55 million	$0.03	1,313.37

eBay has higher revenue and earnings than Global-e Online. eBay is trading at a lower price-to-earnings ratio than Global-e Online, indicating that it is currently the more affordable of the two stocks.

Summary

eBay beats Global-e Online on 8 of the 14 factors compared between the two stocks.

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.

About Global-e Online

Global-E Online Ltd., together with its subsidiaries, provides a platform to enable and accelerate direct-to-consumer cross-border e-commerce in Israel, the United Kingdom, the United States, and internationally. Its platform enables international shoppers to buy online and merchants to sell from, and to, worldwide. The company was incorporated in 2013 and is headquartered in Petah Tikva, Israel.