Reviewing eBay (NASDAQ:EBAY) & DynTek (OTCMKTS:DYNE)

DynTek (OTCMKTS:DYNE) and eBay (NASDAQ:EBAY) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, analyst recommendations, valuation, earnings and risk.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DynTek	0	0	0	0	0.00
eBay	2	17	9	1	2.31

eBay has a consensus target price of $67.42, suggesting a potential downside of 4.50%. Given eBay’s stronger consensus rating and higher probable upside, analysts plainly believe eBay is more favorable than DynTek.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DynTek	N/A	N/A	N/A	N/A	N/A
eBay	$10.31 billion	3.16	$2.77 billion	$4.20	16.81

eBay has higher revenue and earnings than DynTek.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
DynTek	N/A	N/A	N/A
eBay	19.68%	30.97%	8.78%

Insider and Institutional Ownership

87.5% of eBay shares are owned by institutional investors. 4.5% of DynTek shares are owned by insiders. Comparatively, 0.4% of eBay shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

eBay beats DynTek on 9 of the 10 factors compared between the two stocks.

About DynTek

DynTek, Inc. provides professional information technology services to mid-market commercial businesses, state and local government agencies, and educational institutions. It offers infrastructure and data center solutions, including advanced networking, security, server virtualization, and servers and storage solutions; and Microsoft platform solutions comprising management and virtualization, messaging, communications, desktop, data platform, identity and security, portals and collaboration, and midmarket solutions. The company also provides endpoint computing solutions, such as desktop and application, application and desktop virtualization, and desktop management solutions; and talent acquisition and staff augmentation solutions. In addition, it engages in value-added resale of hardware and software products. The company was formerly known as TekInsight, Inc. and changed its name to DynTek, Inc. in December 2001. DynTek, Inc. was founded in 1989 and is headquartered in Newport Beach, California.

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.