Critical Review: Weshop (WSHP) & Its Peers

Weshop (NASDAQ:WSHP) is one of 142 publicly-traded companies in the “Broadline Retail” industry, but how does it weigh in compared to its competitors? We will compare Weshop to similar businesses based on the strength of its analyst recommendations, institutional ownership, valuation, dividends, earnings, profitability and risk.

Valuation and Earnings

This table compares Weshop and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Weshop	$422,859.00	N/A	-1.46
Weshop Competitors	$22.65 billion	$1.73 billion	-224.21

Weshop’s competitors have higher revenue and earnings than Weshop. Weshop is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a summary of current ratings and target prices for Weshop and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Weshop	1	0	0	0	1.00
Weshop Competitors	1348	5296	10673	294	2.56

As a group, “Broadline Retail” companies have a potential upside of 14.75%. Given Weshop’s competitors stronger consensus rating and higher probable upside, analysts plainly believe Weshop has less favorable growth aspects than its competitors.

Profitability

This table compares Weshop and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Weshop	N/A	N/A	N/A
Weshop Competitors	-3.16%	-18.40%	-1.33%

Institutional and Insider Ownership

44.5% of shares of all “Broadline Retail” companies are held by institutional investors. 24.0% of shares of all “Broadline Retail” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Weshop competitors beat Weshop on 7 of the 11 factors compared.

About Weshop

WeShop’s mission is to create a global, e-commerce social community empowered by user ownership. WeShop is a shoppable social network. It is a community built for shoppers to inspire, guide and earn rewards. In one platform, we have blended User-Generated Content specific to products, online retail, and a rewards mechanism relevant to people interested in share ownership. WeShop is a community owned social commerce platform offering shoppers the option to receive shares in the Company every time they make a purchase or refer a new user who makes purchases. WeShop earns revenues from advertising and commissions on sales through the platform. Retailers pay commissions to affiliate networks as a percent of the transaction value, and the affiliate networks in turn pay WeShop a percentage of that commission. To launch and test the platform, WeShop partnered with Influencers, sponsored an organization, Salford City, and developed an innovative Founder Program to spread awareness of the platform. For more information on the Founder Program, see “Business—Founder Program”. Salford City was given cash and an increased referral bonus of 2.5% for its referrals. Influencers were given the opportunity to attend promotional and educational events—certain, high-profile Influencers received share-based incentives and other Influencers were given small payments in cash as the Company experimented to find the best method for attracting new users. WeShop offered all users, including Influencers, a referral bonus of 1% of the amount spent by the referred users in their first five years as WeShop shares. For example, if a user referred a friend who spends £1,000 in their first five years and the share price during that time was £5, then that user would receive two shares, equal to £10 / £5. The share price was fixed by determination of the Board. To receive the bonus, a referring user had to share their unique Referral Code of an existing user and then transacted on the platform. The shares awarded to the referring user was calculated based on a fixed price of the WeShop shares determined by the Company, so the referrer received pound spent by the new user * .01 / fixed price of shares. During its Pilot, the platform drove over £100m of sales and since then has driven approximately £5 million of sales as the Company’s focus has shifted towards listing in the U.S. WeShop Holdings Limited is a BVI Business Company limited by shares and incorporated in the British Virgin Islands. We were initially formed as Boanerges Limited. On November 17, 2021, Boanerges’ shareholders approved the acquisition of the business, assets and name of WeShop Limited and subsequent to the transaction closing, Boanerges was renamed to WeShop Holdings Limited. Our principal executive offices are located in Jersey, Channel Islands.