Head-To-Head Comparison: eBay (EBAY) vs. Shopify (SHOP)

eBay (NASDAQ: EBAY) and Shopify (NYSE:SHOP) are both mid-cap retail/wholesale companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, profitability, dividends, analyst recommendations, earnings, institutional ownership and valuation.

Valuation and Earnings

This table compares eBay and Shopify’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
eBay $8.98 billion 4.46 $7.27 billion $6.74 5.69
Shopify $389.33 million 23.30 -$35.35 million ($0.49) -214.73

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

Insider & Institutional Ownership

86.1% of eBay shares are held by institutional investors. Comparatively, 55.3% of Shopify shares are held by institutional investors. 6.8% of eBay shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and target prices for eBay and Shopify, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
eBay 2 19 16 0 2.38
Shopify 1 13 20 0 2.56

eBay presently has a consensus price target of $38.50, indicating a potential upside of 0.34%. Shopify has a consensus price target of $101.83, indicating a potential downside of 3.22%. Given eBay’s higher probable upside, equities research analysts plainly believe eBay is more favorable than Shopify.

Profitability

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

Net Margins Return on Equity Return on Assets
eBay 80.45% 15.69% 6.90%
Shopify -7.90% -6.58% -5.79%

Risk and Volatility

eBay has a beta of 1.33, suggesting that its stock price is 33% more volatile than the S&P 500. Comparatively, Shopify has a beta of 1.02, suggesting that its stock price is 2% more volatile than the S&P 500.

Summary

eBay beats Shopify on 10 of the 13 factors compared between the two stocks.

eBay Company Profile

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.

Shopify Company Profile

Shopify Inc. (Shopify) provides a cloud-based, multi-channel commerce platform designed for small and medium-sized businesses. The Company offers subscription solutions and merchant solutions. The Company’s software is used by merchants to run their business across all of their sales channels, including Web and mobile storefronts, physical retail locations, social media storefronts and marketplaces. The Shopify platform provides merchants with a single view of their business and customers across all of their sales channels and enables them to manage products and inventory, process orders and payments, ship orders, build customer relationships and leverage analytics and reporting all from one integrated back office. The Shopify platform includes a mobile-optimized checkout system, which is designed to enable merchants’ consumers to buy products over mobile Websites. Its merchants are able to offer their customers the ability to check out by using Apple Pay.

Receive News & Ratings for eBay Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for eBay and related companies with MarketBeat.com's FREE daily email newsletter.

Latest News

Leave a Reply