eBay (NASDAQ:EBAY – Get Free Report) and Uber Technologies (NYSE:UBER – Get Free Report) are both large-cap retail/wholesale companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, earnings, valuation, dividends, institutional ownership, profitability and risk.
Profitability
This table compares eBay and Uber Technologies’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
eBay | 26.41% | 29.69% | 8.46% |
Uber Technologies | 5.02% | 17.06% | 5.16% |
Volatility and Risk
eBay has a beta of 1.32, indicating that its share price is 32% more volatile than the S&P 500. Comparatively, Uber Technologies has a beta of 1.33, indicating that its share price is 33% more volatile than the S&P 500.
Valuation & Earnings
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
eBay | $10.19 billion | 3.09 | $2.77 billion | $5.02 | 12.50 |
Uber Technologies | $37.28 billion | 4.46 | $1.89 billion | $0.91 | 87.04 |
eBay has higher earnings, but lower revenue than Uber Technologies. eBay is trading at a lower price-to-earnings ratio than Uber Technologies, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent ratings and price targets for eBay and Uber Technologies, as provided by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
eBay | 1 | 15 | 8 | 0 | 2.29 |
Uber Technologies | 0 | 7 | 31 | 1 | 2.85 |
eBay presently has a consensus price target of $62.23, suggesting a potential downside of 0.86%. Uber Technologies has a consensus price target of $88.86, suggesting a potential upside of 12.19%. Given Uber Technologies’ stronger consensus rating and higher possible upside, analysts clearly believe Uber Technologies is more favorable than eBay.
Institutional and Insider Ownership
87.5% of eBay shares are held by institutional investors. Comparatively, 80.2% of Uber Technologies shares are held by institutional investors. 0.4% of eBay shares are held by insiders. Comparatively, 3.8% of Uber Technologies shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Summary
Uber Technologies beats eBay on 9 of the 15 factors compared between the two stocks.
About eBay
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.
About Uber Technologies
Uber Technologies, Inc. develops and operates proprietary technology applications in the United States, Canada, Latin America, Europe, the Middle East, Africa, and Asia excluding China and Southeast Asia. It operates through three segments: Mobility, Delivery, and Freight. The Mobility segment connects consumers with a range of transportation modalities, such as ridesharing, carsharing, micromobility, rentals, public transit, taxis, and other modalities; and offers riders in a variety of vehicle types, as well as financial partnerships products and advertising services. The Delivery segment allows to search for and discover restaurants to grocery, alcohol, convenience, and other retails; order a meal or other items; and Uber direct, a white-label Delivery-as-a-Service for retailers and restaurants, as well as advertising. The Freight segment manages transportation and logistics network, which connects shippers and carriers in digital marketplace including carriers upfronts, pricing, and shipment booking; and provides on-demand platform to automate logistics end-to-end transactions for small-and medium-sized business to global enterprises. The company was formerly known as Ubercab, Inc. and changed its name to Uber Technologies, Inc. in February 2011. Uber Technologies, Inc. was founded in 2009 and is headquartered in San Francisco, California.
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