Financial Contrast: Newegg Commerce (NASDAQ:NEGG) & Wayfair (NYSE:W)

Newegg Commerce (NASDAQ:NEGG) and Wayfair (NYSE:W) are both retail/wholesale companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, valuation, dividends, profitability, risk and analyst recommendations.

Volatility and Risk

Newegg Commerce has a beta of 3.52, indicating that its share price is 252% more volatile than the S&P 500. Comparatively, Wayfair has a beta of 3.03, indicating that its share price is 203% more volatile than the S&P 500.

Valuation & Earnings

This table compares Newegg Commerce and Wayfair”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Newegg Commerce	$1.31 billion	2.22	-$43.33 million	N/A	N/A
Wayfair	$11.85 billion	1.24	-$492.00 million	($2.56)	-44.01

Newegg Commerce has higher earnings, but lower revenue than Wayfair.

Profitability

This table compares Newegg Commerce and Wayfair’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Newegg Commerce	N/A	N/A	N/A
Wayfair	-2.65%	N/A	-3.77%

Analyst Ratings

This is a breakdown of current ratings and price targets for Newegg Commerce and Wayfair, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Newegg Commerce	1	0	0	0	1.00
Wayfair	2	9	19	2	2.66

Wayfair has a consensus target price of $105.57, suggesting a potential downside of 6.29%. Given Wayfair’s stronger consensus rating and higher possible upside, analysts clearly believe Wayfair is more favorable than Newegg Commerce.

Institutional & Insider Ownership

0.4% of Newegg Commerce shares are owned by institutional investors. Comparatively, 89.7% of Wayfair shares are owned by institutional investors. 22.9% of Newegg Commerce shares are owned by company insiders. Comparatively, 21.9% of Wayfair shares are owned by company 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.

About Newegg Commerce

Newegg Commerce, Inc. operates as an electronics-focused e-retailer in North America. The company offers desktops, laptops, gaming laptops, peripherals, and accessories; CPU/processors, graphic cards, motherboards, storage devices, and computer accessories; home video and audio, headphones, pro audio/video, cellphones, wearables, and digital cameras; display and printing, office technology furniture, office supplies, and mailing and inventory supplies; and software, digital downloads, warranty and services, 3rd party gift cards, and entertainment products. It also provides Xbox, PlayStation, home networking, server and components, smart home products, car electronics, motorcycles and ATV, wheels and tires, home improvement tools, home appliances, kitchen utensils, outdoor and garden furniture, fitness, and sports and health products. The company operates B2C platforms, including Newegg.com, Newegg.ca, and Newegg Global, as well as mobile apps; and B2B platforms comprising NeweggBusiness.com. The company was founded in 2001 and is headquartered in City of Industry, California. Newegg Commerce, Inc. is a subsidiary of Hangzhou Liaison Interactive Information Technology Co., Ltd.

About Wayfair

Wayfair Inc. provides e-commerce business in the United States and internationally. The company offers approximately thirty million products for the home sector. It offers online selections of furniture, décor, housewares, and home improvement products through its sites consisting of Wayfair, Joss & Main, AllModern, Birch Lane, Perigold, and Wayfair Professional. The company offers its products under the Three Posts and Mercury Row brand name. The company was founded in 2002 and is headquartered in Boston, Massachusetts.