Critical Contrast: Newegg Commerce (NASDAQ:NEGG) and eBay (NASDAQ:EBAY)

Newegg Commerce (NASDAQ:NEGG) and eBay (NASDAQ:EBAY) are both retail/wholesale companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, profitability, dividends and risk.

Volatility & Risk

Newegg Commerce has a beta of 3.46, indicating that its stock price is 246% more volatile than the S&P 500. Comparatively, eBay has a beta of 1.39, indicating that its stock price is 39% more volatile than the S&P 500.

Valuation & Earnings

This table compares Newegg Commerce and eBay”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Newegg Commerce	$1.40 billion	0.46	-$4.88 million	N/A	N/A
eBay	$11.10 billion	4.43	$2.03 billion	$4.41	25.12

eBay has higher revenue and earnings than Newegg Commerce.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Newegg Commerce	N/A	N/A	N/A
eBay	17.58%	46.11%	11.97%

Institutional and Insider Ownership

0.4% of Newegg Commerce shares are held by institutional investors. Comparatively, 87.5% of eBay shares are held by institutional investors. 22.9% of Newegg Commerce shares are held by insiders. Comparatively, 0.7% of eBay 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.

Analyst Ratings

This is a breakdown of recent recommendations for Newegg Commerce and eBay, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Newegg Commerce	1	0	0	0	1.00
eBay	1	19	13	0	2.36

eBay has a consensus price target of $108.61, suggesting a potential downside of 1.97%. Given eBay’s stronger consensus rating and higher probable upside, analysts clearly believe eBay is more favorable than Newegg Commerce.

Summary

eBay beats Newegg Commerce on 10 of the 12 factors compared between the two stocks.

About Newegg Commerce

Newegg Commerce, Inc. operates as an electronics-focused e-retailer in North America. The company offers desktops, laptops, gaming laptops, peripherals, and accessories; CPU/processors, graphic cards, motherboards, storage devices, and computer accessories; home video and audio, headphones, pro audio/video, cellphones, wearables, and digital cameras; display and printing, office technology furniture, office supplies, and mailing and inventory supplies; and software, digital downloads, warranty and services, 3rd party gift cards, and entertainment products. It also provides Xbox, PlayStation, home networking, server and components, smart home products, car electronics, motorcycles and ATV, wheels and tires, home improvement tools, home appliances, kitchen utensils, outdoor and garden furniture, fitness, and sports and health products. The company operates B2C platforms, including Newegg.com, Newegg.ca, and Newegg Global, as well as mobile apps; and B2B platforms comprising NeweggBusiness.com. The company was founded in 2001 and is headquartered in City of Industry, California. Newegg Commerce, Inc. is a subsidiary of Hangzhou Liaison Interactive Information Technology Co., Ltd.

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.