Comparing eBay (NASDAQ:EBAY) & ContextLogic (NASDAQ:WISH)

ContextLogic (NASDAQ:WISHGet Free Report) and eBay (NASDAQ:EBAYGet Free Report) are both consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, risk, earnings, analyst recommendations, valuation, institutional ownership and profitability.

Profitability

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

Net Margins Return on Equity Return on Assets
ContextLogic -131.05% -115.96% -62.36%
eBay 18.50% 47.88% 12.38%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for ContextLogic and eBay, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ContextLogic 0 0 0 0 0.00
eBay 2 17 14 0 2.36

eBay has a consensus target price of $117.09, indicating a potential upside of 11.97%. Given eBay’s stronger consensus rating and higher probable upside, analysts plainly believe eBay is more favorable than ContextLogic.

Earnings and Valuation

This table compares ContextLogic and eBay”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ContextLogic $287.00 million 0.89 -$317.00 million ($11.98) -0.88
eBay $11.10 billion 4.19 $2.03 billion $4.83 21.65

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

Institutional and Insider Ownership

46.0% of ContextLogic shares are held by institutional investors. Comparatively, 87.5% of eBay shares are held by institutional investors. 8.2% of ContextLogic shares are held by insiders. Comparatively, 0.7% of eBay shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

ContextLogic has a beta of 2.09, indicating that its stock price is 109% more volatile than the S&P 500. Comparatively, eBay has a beta of 1.37, indicating that its stock price is 37% more volatile than the S&P 500.

Summary

eBay beats ContextLogic on 12 of the 14 factors compared between the two stocks.

About ContextLogic

(Get Free Report)

ContextLogic Inc. operates as a mobile ecommerce company in Europe, North America, South America, and internationally. The company operates Wish, an ecommerce platform that connects consumers to merchants. It also provides marketplace and logistics services to merchants. ContextLogic Inc. was incorporated in 2010 and is headquartered in San Francisco, California.

About eBay

(Get Free Report)

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.

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