Reviewing eBay (NASDAQ:EBAY) and Newegg Commerce (NASDAQ:NEGG)

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

Profitability

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

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

Risk & Volatility

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

Institutional & Insider Ownership

87.5% of eBay shares are owned by institutional investors. Comparatively, 0.5% of Newegg Commerce shares are owned by institutional investors. 0.7% of eBay shares are owned by company insiders. Comparatively, 22.9% of Newegg Commerce shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

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

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

eBay currently has a consensus price target of $107.84, suggesting a potential downside of 1.04%. Given eBay’s stronger consensus rating and higher possible upside, analysts plainly believe eBay is more favorable than Newegg Commerce.

Earnings & Valuation

This table compares eBay and Newegg Commerce”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
eBay	$11.60 billion	4.17	$2.03 billion	$4.41	24.71
Newegg Commerce	$1.44 million	430.59	-$4.88 million	N/A	N/A

eBay has higher revenue and earnings than Newegg Commerce.

Summary

eBay beats Newegg Commerce on 9 of the 12 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 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.