Pick n Pay Stores (OTCMKTS:PKPYY) & eBay (NASDAQ:EBAY) Financial Contrast

Pick n Pay Stores (OTCMKTS:PKPYY) and eBay (NASDAQ:EBAY) are both consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, earnings, valuation, analyst recommendations, dividends, profitability and risk.

Dividends

Pick n Pay Stores pays an annual dividend of $3.18 per share and has a dividend yield of 52.1%. eBay pays an annual dividend of $1.24 per share and has a dividend yield of 1.1%. Pick n Pay Stores pays out 52.9% of its earnings in the form of a dividend. eBay pays out 25.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. eBay has raised its dividend for 7 consecutive years.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Pick n Pay Stores and eBay, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pick n Pay Stores	0	0	1	0	3.00
eBay	2	17	14	0	2.36

eBay has a consensus price target of $116.69, indicating a potential upside of 4.20%. Given eBay’s higher probable upside, analysts clearly believe eBay is more favorable than Pick n Pay Stores.

Earnings and Valuation

This table compares Pick n Pay Stores and eBay”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pick n Pay Stores	N/A	N/A	N/A	$6.01	1.01
eBay	$11.10 billion	4.48	$2.03 billion	$4.83	23.18

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

Insider and Institutional Ownership

87.5% of eBay shares are owned by institutional investors. 0.7% of eBay shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Pick n Pay Stores and eBay’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pick n Pay Stores	N/A	N/A	N/A
eBay	18.50%	47.88%	12.38%

Summary

eBay beats Pick n Pay Stores on 11 of the 14 factors compared between the two stocks.

About Pick n Pay Stores

Pick n Pay Stores Limited, together with its subsidiaries, engages in the retail of food, grocery, clothing, liquor, and general merchandise products in South Africa and Rest of Africa. It owns and franchises hypermarkets, supermarkets, clothing stores, liquor stores, superstores, build stores, punch stores, and express stores under the Pick n Pay and Boxer brands. The company also offers its products through an online shopping platform www.pnp.co.za. Pick n Pay Stores Limited was founded in 1967 and is based in Cape Town, South Africa.

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.