Critical Review: D-MARKET Electronic Services & Trading (HEPS) and Its Competitors

D-MARKET Electronic Services & Trading (NASDAQ:HEPS) is one of 142 publicly-traded companies in the “Broadline Retail” industry, but how does it compare to its peers? We will compare D-MARKET Electronic Services & Trading to similar companies based on the strength of its earnings, dividends, risk, valuation, profitability, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings and price targets for D-MARKET Electronic Services & Trading and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
D-MARKET Electronic Services & Trading	1	2	0	0	1.67
D-MARKET Electronic Services & Trading Competitors	1404	5402	10874	309	2.56

D-MARKET Electronic Services & Trading presently has a consensus target price of $3.07, indicating a potential upside of 11.23%. As a group, “Broadline Retail” companies have a potential upside of 20.84%. Given D-MARKET Electronic Services & Trading’s peers stronger consensus rating and higher possible upside, analysts clearly believe D-MARKET Electronic Services & Trading has less favorable growth aspects than its peers.

Valuation and Earnings

This table compares D-MARKET Electronic Services & Trading and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
D-MARKET Electronic Services & Trading	$2.15 billion	-$144.76 million	-5.41
D-MARKET Electronic Services & Trading Competitors	$55.10 billion	$1.71 billion	15.50

D-MARKET Electronic Services & Trading’s peers have higher revenue and earnings than D-MARKET Electronic Services & Trading. D-MARKET Electronic Services & Trading is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Risk and Volatility

D-MARKET Electronic Services & Trading has a beta of 2.08, suggesting that its stock price is 108% more volatile than the S&P 500. Comparatively, D-MARKET Electronic Services & Trading’s peers have a beta of 1.72, suggesting that their average stock price is 72% more volatile than the S&P 500.

Profitability

This table compares D-MARKET Electronic Services & Trading and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
D-MARKET Electronic Services & Trading	-7.78%	-776.28%	-21.12%
D-MARKET Electronic Services & Trading Competitors	-2.99%	-38.42%	-2.56%

Insider & Institutional Ownership

40.5% of D-MARKET Electronic Services & Trading shares are held by institutional investors. Comparatively, 44.6% of shares of all “Broadline Retail” companies are held by institutional investors. 36.3% of D-MARKET Electronic Services & Trading shares are held by insiders. Comparatively, 23.6% of shares of all “Broadline Retail” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

D-MARKET Electronic Services & Trading peers beat D-MARKET Electronic Services & Trading on 11 of the 13 factors compared.

About D-MARKET Electronic Services & Trading

D-Market Elektronik Hizmetler ve Ticaret A.S. operates e-commerce platforms in Turkey. The company operates www.hepsiburada.com, a retail website that provides its retail customers a range of merchandise, including electronics and non-electronics products, such as books, sports, toys, kids and baby products, cosmetics, furniture, etc. It also offers Hepsiburada Market, an app-in-app initiative and on-demand delivery service that delivers groceries and water; HepsiJet that provides last-mile delivery services; HepsiLojistik, which offers storage and fulfillment services; HepsiMat, an offline network of pick-up and drop-off point; HepsiAd that provides advertising service; HepsiGlobal for discovering and purchasing products from international merchants online; Hepsipay, which offers an e-money and payment services; and Hepsiburada Seyahat for buying airline tickets online. The company was incorporated in 2000 and is headquartered in Istanbul, Turkey.