Critical Survey: Wayfair (W) vs. LightInTheBox Holding Co. (LITB)
LightInTheBox Holding Co. (NYSE: LITB) and Wayfair (NYSE:W) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, analyst recommendations, risk, profitabiliy, dividends and earnings.
Risk and Volatility
LightInTheBox Holding Co. has a beta of 1.31, suggesting that its stock price is 31% more volatile than the S&P 500. Comparatively, Wayfair has a beta of 1.03, suggesting that its stock price is 3% more volatile than the S&P 500.
Earnings and Valuation
This table compares LightInTheBox Holding Co. and Wayfair’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|LightInTheBox Holding Co.||$297.89 million||0.61||-$8.31 million||($0.13)||-20.38|
|Wayfair||$3.59 billion||1.87||-$166.48 million||($2.46)||-31.43|
LightInTheBox Holding Co. has higher revenue, but lower earnings than Wayfair. Wayfair is trading at a lower price-to-earnings ratio than LightInTheBox Holding Co., indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
0.6% of LightInTheBox Holding Co. shares are owned by institutional investors. 62.2% of LightInTheBox Holding Co. shares are owned by insiders. Comparatively, 63.9% of Wayfair shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This table compares LightInTheBox Holding Co. and Wayfair’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|LightInTheBox Holding Co.||-3.01%||-9.62%||-5.61%|
This is a summary of current ratings and recommmendations for LightInTheBox Holding Co. and Wayfair, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|LightInTheBox Holding Co.||0||0||0||0||N/A|
Wayfair has a consensus price target of $65.08, indicating a potential downside of 15.84%. Given Wayfair’s higher probable upside, analysts plainly believe Wayfair is more favorable than LightInTheBox Holding Co..
LightInTheBox Holding Co. beats Wayfair on 7 of the 12 factors compared between the two stocks.
About LightInTheBox Holding Co.
LightInTheBox Holding Co., Ltd. (LightInTheBox) is an online retail company that delivers products directly to consumers around the world. The Company offers a range of products through www.lightinthebox.com, www.miniinthebox.com and its other Websites, as well as mobile applications, which are available in approximately 30 languages. It has over 687,800 product listings. The Company also offers a range of other products in its other general merchandise product category. Its major markets are Europe and North America. The Company’s product offerings include apparel and other general merchandise. Its apparel category includes customized, special occasion apparel and fast fashion. Its other general merchandise category includes small accessories and gadgets, home and garden, electronics and communication devices and other products. The Company has additional Websites for specific products and geographic regions, including www.ouku.com for products targeting its Chinese customer base.
Wayfair Inc. (Wayfair) offers browsing, merchandising and product discovery for a range of products from various suppliers. The Company operates through two segments: U.S. and International. The U.S. segment consists of amounts earned through product sales through the Company’s five sites in the United States and through sites operated by third parties in the United States. The International segment consists of amounts earned through product sales through its international sites. It has an online selection of furniture, decor, decorative accents, housewares, seasonal decor and other home goods. As of December 31, 2016, it had offered five sites, including Websites, mobile-optimized Websites and mobile applications: Wayfair, Joss & Main, AllModern, DwellStudio and Birch Lane. Wayfair is an online destination for all things home. Birch Lane offers a collection of furnishings and home decor. Its sites feature certain products under its house brands, such as Three Posts and Mercury Row.
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