Netshoes Cayman (NYSE: NETS) and Wayfair (NYSE:W) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, profitability, dividends, valuation, analyst recommendations, risk and earnings.

Profitability

This table compares Netshoes Cayman and Wayfair’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Netshoes Cayman N/A N/A N/A
Wayfair -5.06% -658.45% -25.38%

Institutional and Insider Ownership

61.5% of Netshoes Cayman shares are held by institutional investors. Comparatively, 67.0% of Wayfair shares are held by institutional investors. 56.9% of Wayfair shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Netshoes Cayman and Wayfair, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Netshoes Cayman 0 1 3 0 2.75
Wayfair 0 7 15 0 2.68

Netshoes Cayman presently has a consensus price target of $21.88, suggesting a potential upside of 250.00%. Wayfair has a consensus price target of $76.01, suggesting a potential upside of 8.23%. Given Netshoes Cayman’s stronger consensus rating and higher probable upside, equities analysts clearly believe Netshoes Cayman is more favorable than Wayfair.

Valuation & Earnings

This table compares Netshoes Cayman and Wayfair’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Netshoes Cayman $533.75 million 0.36 -$46.35 million N/A N/A
Wayfair $3.38 billion 1.82 -$194.37 million ($2.50) -28.09

Netshoes Cayman has higher earnings, but lower revenue than Wayfair.

Summary

Netshoes Cayman beats Wayfair on 6 of the 11 factors compared between the two stocks.

Netshoes Cayman Company Profile

Netshoes (Cayman) Limited is a sports and lifestyle online retailer in Latin America. The Company focuses on offering an online consumer platform in Latin America. The Company operates through two segments: Brazil and International. The Company operates in Brazil, Argentina, and Mexico. The Brazil segment consists of retail sales of consumer products from all of its verticals (which includes sales of sporting goods and related garments, as well as fashion and beauty goods) carried out through its sites Netshoes.com.br and Zattini.com.br and third-party sites that it manages, as well as its business to business offline operation. The International segment consists of retail sales of consumer products (mainly sporting goods and related garments) from its sites Netshoes.com.ar and Netshoes.com.mx in Argentina and Mexico.

Wayfair Company Profile

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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