QVC Group (NASDAQ:QVCGA) and eBay (NASDAQ:EBAY) Financial Analysis

eBay (NASDAQ:EBAY) and QVC Group (NASDAQ:QVCGA) are both consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, valuation, risk, earnings, analyst recommendations, dividends and institutional ownership.

Analyst Ratings

This is a breakdown of current recommendations and price targets for eBay and QVC Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
eBay	2	17	15	0	2.38
QVC Group	1	0	0	0	1.00

eBay currently has a consensus target price of $117.24, indicating a potential upside of 12.08%. Given eBay’s stronger consensus rating and higher possible upside, research analysts clearly believe eBay is more favorable than QVC Group.

Insider & Institutional Ownership

87.5% of eBay shares are held by institutional investors. Comparatively, 64.1% of QVC Group shares are held by institutional investors. 0.7% of eBay shares are held by insiders. Comparatively, 12.3% of QVC Group shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

eBay has a beta of 1.37, suggesting that its share price is 37% more volatile than the S&P 500. Comparatively, QVC Group has a beta of 2.85, suggesting that its share price is 185% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
eBay	18.50%	47.88%	12.38%
QVC Group	-26.42%	-1.02%	0.32%

Valuation and Earnings

This table compares eBay and QVC Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
eBay	$12.01 billion	3.88	$2.03 billion	$4.83	21.66
QVC Group	$9.23 billion	0.00	-$2.44 billion	($460.35)	-0.00

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

Summary

eBay beats QVC Group 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 QVC Group

QVC Group, Inc. engages in the business of video and online commerce industries. It operates through the following segments: QxH, QVC International and CBI. The QxH segment markets and sells a wide variety of consumer products in the U.S., primarily by means of its televised shopping programs and via the Internet through their websites and mobile applications. The QVC International segment markets and sells a wide variety of consumer products in several foreign countries, primarily by means of its televised shopping programs and via the Internet through its international websites and mobile applications. The CBI segment consists of a portfolio of aspirational home and apparel brands in the U.S. that sell merchandise through brick-and-mortar retail locations as well as via the Internet through their websites. The company was founded on March 28, 1991 and is headquartered in Englewood, CO.