Critical Contrast: eBay (EBAY) and Geeknet (GKNT)

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

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for eBay and Geeknet, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
eBay 2 18 16 0 2.39
Geeknet 0 0 0 0 N/A

eBay presently has a consensus target price of $37.44, indicating a potential downside of 2.98%. Given eBay’s higher probable upside, equities analysts plainly believe eBay is more favorable than Geeknet.

Earnings & Valuation

This table compares eBay and Geeknet’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
eBay $9.16 billion 4.51 $2.88 billion $6.62 5.83
Geeknet N/A N/A N/A N/A N/A

eBay has higher revenue and earnings than Geeknet.

Institutional and Insider Ownership

84.8% of eBay shares are owned by institutional investors. 6.8% of eBay shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
eBay 80.93% 17.50% 7.32%
Geeknet -20.58% -25.85% -19.84%

Summary

eBay beats Geeknet on 8 of the 8 factors compared between the two stocks.

About eBay

eBay Inc. (eBay) is a commerce company, which operates through its Marketplace, StubHub and Classifieds platforms. The Company connects buyers and sellers around the world. Its platforms enable sellers around the world to organize and offer their inventory for sale, and buyers to find and purchase it. Its platforms are accessible through an online experience (desktop and laptop computers), from mobile devices (smartphones and tablets) and by application programming interface (API) (platform access for third-party software developers). The Company’s Marketplace platforms include its online marketplace located at www.ebay.com, localized counterparts and the eBay mobile applications. The Company’s StubHub platforms include its online ticket platform located at www.stubhub.com, the StubHub mobile applications and Ticketbis. The Company’s Classifieds platforms include a collection of brands, such as Mobile.de, Kijiji, Gumtree, Marktplaats, eBay Kleinanzeigen and others.

About Geeknet

Geeknet, Inc. (Geeknet) sells collectibles, apparel, gadgets, electronics, toys and other retail products for technology enthusiasts and general consumers through the ThinkGeek Website and exclusive products to the Company’s wholesale channel customers. The Company has three segments: Website, Wholesale and ThinkGeek Solutions. The ThinkGeek Solutions segment has been aggregated into the Website segment. The Website segment sells geek-themed retail products and video game-themed merchandise through the ThinkGeek Website and through the ThinkGeek Solutions Web-stores. The Wholesale segment sells primarily exclusive GeekLabs (the in-house product development team) products to brick-and-mortar retailers. The Company along with its subsidiaries, operates a business aimed at the global geek community, which includes technology enthusiasts, pop-culture aficionados and other fans. ThinkGeek, Inc. and ThinkGeek Solutions, Inc. are its two wholly owned subsidiaries.

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