QVC Group (NASDAQ:QVCGA) and eBay (NASDAQ:EBAY) Critical Comparison

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

Analyst Ratings

This is a breakdown of current ratings for QVC Group and eBay, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
QVC Group	1	0	0	0	1.00
eBay	2	17	14	1	2.41

eBay has a consensus price target of $117.24, indicating a potential upside of 12.59%. Given eBay’s stronger consensus rating and higher probable upside, analysts clearly believe eBay is more favorable than QVC Group.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
QVC Group	-26.42%	-1.02%	0.32%
eBay	18.50%	47.88%	12.38%

Volatility and Risk

QVC Group has a beta of 2.85, meaning that its share price is 185% more volatile than the S&P 500. Comparatively, eBay has a beta of 1.37, meaning that its share price is 37% more volatile than the S&P 500.

Valuation & Earnings

This table compares QVC Group and eBay”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
QVC Group	$9.23 billion	0.00	-$2.44 billion	($460.35)	-0.00
eBay	$11.10 billion	4.17	$2.03 billion	$4.83	21.56

eBay has higher revenue and earnings than QVC Group. QVC Group 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

64.1% of QVC Group shares are owned by institutional investors. Comparatively, 87.5% of eBay shares are owned by institutional investors. 12.3% of QVC Group shares are owned by insiders. Comparatively, 0.7% of eBay shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

eBay beats QVC Group on 13 of the 15 factors compared between the two stocks.

About QVC Group

QVC Group, Inc. engages in the business of video and online commerce industries. It operates through the following segments: QxH, QVC International and CBI. The QxH segment markets and sells a wide variety of consumer products in the U.S., primarily by means of its televised shopping programs and via the Internet through their websites and mobile applications. The QVC International segment markets and sells a wide variety of consumer products in several foreign countries, primarily by means of its televised shopping programs and via the Internet through its international websites and mobile applications. The CBI segment consists of a portfolio of aspirational home and apparel brands in the U.S. that sell merchandise through brick-and-mortar retail locations as well as via the Internet through their websites. The company was founded on March 28, 1991 and is headquartered in Englewood, CO.

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.