eBay (NASDAQ:EBAY – Get Free Report) and iPower (NASDAQ:IPW – Get Free Report) are both consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, valuation and dividends.
Insider and Institutional Ownership
87.5% of eBay shares are owned by institutional investors. Comparatively, 2.7% of iPower shares are owned by institutional investors. 0.7% of eBay shares are owned by company insiders. Comparatively, 0.7% of iPower shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Risk and Volatility
eBay has a beta of 1.3, indicating that its stock price is 30% more volatile than the S&P 500. Comparatively, iPower has a beta of 3.24, indicating that its stock price is 224% more volatile than the S&P 500.
Earnings & Valuation
This table compares eBay and iPower”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| eBay | $11.10 billion | 4.82 | $2.03 billion | $4.58 | 26.63 |
| iPower | $19.96 million | 0.01 | -$11.62 million | ($5,768.10) | -0.00 |
eBay has higher revenue and earnings than iPower. iPower is trading at a lower price-to-earnings ratio than eBay, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares eBay and iPower’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| eBay | 16.84% | 49.20% | 12.47% |
| iPower | -23.43% | -47.96% | -27.32% |
Analyst Ratings
This is a summary of current recommendations for eBay and iPower, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| eBay | 2 | 16 | 17 | 0 | 2.43 |
| iPower | 1 | 0 | 0 | 0 | 1.00 |
eBay currently has a consensus target price of $123.52, indicating a potential upside of 1.28%. Given eBay’s stronger consensus rating and higher possible upside, equities analysts clearly believe eBay is more favorable than iPower.
Summary
eBay beats iPower on 12 of the 14 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 iPower
iPower Inc. operates as an online retailer and supplier of consumer home, garden, and pet products for commercial businesses and individuals in the United States. The company offers grow light systems; advanced heating, ventilation, and air conditioning systems; water pumps, heaters, chillers, and filters; nutrient and fertilizer delivery systems; and various growing media products. It also provides general gardening products, including environmental sensors and controls; and home products, which comprise commercial fans, floor and wall fans, storage and shelving units, and chairs. The company sells its products under the iPower and Simple Deluxe brand names through zenhydro.com, simpledeluxe.com, and various third-party online platforms. The company was formerly known as BZRTH Inc. and changed its name to iPower Inc. in September 2020. iPower Inc. was incorporated in 2018 and is based in Rancho Cucamonga, California.
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