Critical Survey: eBay (NASDAQ:EBAY) vs. Yunji (NASDAQ:YJ)

Yunji (NASDAQ:YJ) and eBay (NASDAQ:EBAY) are both retail/wholesale companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, risk, profitability, dividends and valuation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Yunji	N/A	N/A	N/A
eBay	20.37%	41.94%	11.09%

Volatility and Risk

Yunji has a beta of -0.11, meaning that its share price is 111% less volatile than the S&P 500. Comparatively, eBay has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500.

Insider & Institutional Ownership

87.5% of eBay shares are owned by institutional investors. 45.3% of Yunji shares are owned by company insiders. Comparatively, 0.6% of eBay shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Yunji and eBay”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Yunji	$57.22 million	0.13	-$16.86 million	($3.44)	-0.43
eBay	$10.28 billion	3.75	$1.98 billion	$4.60	18.52

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Yunji	1	0	0	0	1.00
eBay	2	20	14	1	2.38

eBay has a consensus target price of $94.41, indicating a potential upside of 10.79%. Given eBay’s stronger consensus rating and higher possible upside, analysts clearly believe eBay is more favorable than Yunji.

Summary

eBay beats Yunji on 14 of the 15 factors compared between the two stocks.

About Yunji

Yunji Inc., together with its subsidiaries, operates a social e-commerce platform in the People's Republic of China. It offers a range of product categories that cater various daily needs of users and their households, including beauty and personal care, household goods, cloths, food and fresh produce, computer and electronics, apparel, bags and cases, baby and maternity products, and home appliances. The company was founded in 2015 and is headquartered in Hangzhou, the People's Republic of China.

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.