Overstock.com (NASDAQ: OSTK) and PCM (NASDAQ:PCMI) are both small-cap retail/wholesale companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, risk, valuation, dividends, profitability, analyst recommendations and institutional ownership.
Institutional & Insider Ownership
60.0% of Overstock.com shares are owned by institutional investors. Comparatively, 57.6% of PCM shares are owned by institutional investors. 28.9% of Overstock.com shares are owned by insiders. Comparatively, 24.0% of PCM shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
This is a breakdown of current ratings and price targets for Overstock.com and PCM, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Overstock.com presently has a consensus price target of $62.50, indicating a potential upside of 74.34%. PCM has a consensus price target of $12.00, indicating a potential upside of 46.34%. Given Overstock.com’s higher possible upside, research analysts plainly believe Overstock.com is more favorable than PCM.
Volatility & Risk
Overstock.com has a beta of 1.87, meaning that its stock price is 87% more volatile than the S&P 500. Comparatively, PCM has a beta of 0.57, meaning that its stock price is 43% less volatile than the S&P 500.
Earnings & Valuation
This table compares Overstock.com and PCM’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Overstock.com||$1.74 billion||0.61||-$109.87 million||($1.81)||-19.81|
|PCM||$2.19 billion||0.04||$3.09 million||$1.08||7.59|
PCM has higher revenue and earnings than Overstock.com. Overstock.com is trading at a lower price-to-earnings ratio than PCM, indicating that it is currently the more affordable of the two stocks.
This table compares Overstock.com and PCM’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
PCM beats Overstock.com on 7 of the 12 factors compared between the two stocks.
Overstock.com, Inc. is an online retailer and incubator of blockchain technology. Through its online retail business, the Company offers a range of price-competitive brand name, non-brand name and closeout products, including furniture, home decor, bedding and bath, housewares, jewelry and watches, apparel and designer accessories, health and beauty products, electronics and computers, and sporting goods. It operates Retail and Medici businesses. Its Retail business consists of its Direct and Partner segments. Its Other segment consists of Medici. The Company also sells various books, magazines, compact discs (CDs), digital versatile discs (DVDs) and video games. The Company sells these products and services through its Internet Websites located at www.overstock.com, www.o.co and www.o.biz. The Company’s other offerings include Worldstock Fair Trade, Main Street Revolution, Farmers Market, Pet Adoptions, Insurance and Supplier Oasis.
PCM, Inc., through its subsidiaries, operates as a multi-vendor provider of technology products and solutions in the United States and the rest of Europe. The company operates through four segments: Commercial, Public Sector, Canada, and United Kingdom. It primarily sells device products, servers, storage products, network products, printers, and related accessories and devices. The company also provides managed services, cloud-based services, consulting, IT management and other IT services, and technical certifications and operational expertise in various practice areas; and selection, implementation, and IT solutions comprising security, virtualization, data services, unified communications, and infrastructure, as well as software asset management and software value-added reseller services. PCM, Inc. markets its products, services, and solutions to individuals; commercial businesses; state, local, and federal governments; and educational institutions through its sales force, e-commerce channels, and technology services teams, as well as cloud data centers, field services organizations, and online extranets. The company was formerly known as PC Mall, Inc. and changed its name to PCM, Inc. in December 2012. PCM, Inc. was founded in 1987 and is headquartered in El Segundo, California.
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