Analyzing eBay (EBAY) and The Competition

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 similar businesses based on the strength of its risk, valuation, institutional ownership, profitability, dividends, earnings and analyst recommendations.

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%	49.20%	12.47%
eBay Competitors	-3.01%	-38.59%	-2.58%

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
eBay	2	16	17	0	2.43
eBay Competitors	1405	5409	10891	311	2.56

eBay currently has a consensus target price of $123.52, suggesting a potential downside of 0.56%. As a group, “Broadline Retail” companies have a potential upside of 21.74%. Given eBay’s rivals stronger consensus rating and higher probable upside, analysts plainly believe eBay has less favorable growth aspects than its rivals.

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 29.8% and pay out 11.5% of their earnings in the form of a dividend. eBay has raised its dividend for 7 consecutive years. eBay lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Valuation & Earnings

This table compares eBay and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
eBay	$12.39 billion	$2.03 billion	27.12
eBay Competitors	$54.97 billion	$1.71 billion	15.06

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.

Volatility & Risk

eBay has a beta of 1.3, meaning that its share price is 30% more volatile than the S&P 500. Comparatively, eBay’s rivals have a beta of 1.74, meaning that their average share price is 74% more volatile than the S&P 500.

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

Summary

eBay rivals beat eBay on 9 of the 15 factors compared.

eBay Company Profile

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.