Contrasting eBay (EBAY) & Its Peers

eBay (NASDAQ:EBAY) is one of 142 public companies in the “Broadline Retail” industry, but how does it contrast to its rivals? We will compare eBay to related companies based on the strength of its profitability, institutional ownership, valuation, earnings, dividends, risk and analyst recommendations.

Valuation and Earnings

This table compares eBay and its rivals gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
eBay	$11.10 billion	$2.03 billion	26.40
eBay Competitors	$24.53 billion	$1.71 billion	15.04

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

Dividends

eBay pays an annual dividend of $1.24 per share and has a dividend yield of 1.0%. eBay pays out 27.1% of its earnings in the form of a dividend. As a group, “Broadline Retail” companies pay a dividend yield of 17.6% and pay out 73.0% of their earnings in the form of a dividend. eBay has raised its dividend for 7 consecutive years.

Profitability

This table compares eBay and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
eBay	16.84%	48.79%	12.50%
eBay Competitors	-2.99%	-38.42%	-2.56%

Insider and Institutional Ownership

87.5% of eBay shares are owned by institutional investors. Comparatively, 44.6% of shares of all “Broadline Retail” companies are owned by institutional investors. 0.7% of eBay shares are owned by company insiders. Comparatively, 23.6% of shares of all “Broadline Retail” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

eBay has a beta of 1.33, suggesting that its share price is 33% more volatile than the S&P 500. Comparatively, eBay’s rivals have a beta of 1.70, suggesting that their average share price is 70% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for eBay and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
eBay	3	16	16	0	2.37
eBay Competitors	1406	5407	10880	309	2.56

eBay currently has a consensus price target of $123.36, suggesting a potential upside of 2.01%. As a group, “Broadline Retail” companies have a potential upside of 18.17%. Given eBay’s rivals stronger consensus rating and higher possible upside, analysts clearly believe eBay has less favorable growth aspects than its rivals.

Summary

eBay rivals beat eBay on 8 of the 15 factors compared.

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.