Analyzing eBay (NASDAQ:EBAY) & Coupang (NYSE:CPNG)

eBay (NASDAQ:EBAY) and Coupang (NYSE:CPNG) are both large-cap consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, dividends, valuation, earnings, risk, analyst recommendations and profitability.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
eBay	18.50%	47.88%	12.38%
Coupang	-2.16%	-8.77%	-2.00%

Earnings & Valuation

This table compares eBay and Coupang”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
eBay	$11.10 billion	4.50	$2.03 billion	$4.83	23.23
Coupang	$34.53 billion	0.82	$208.00 million	($0.43)	-36.73

eBay has higher earnings, but lower revenue than Coupang. Coupang is trading at a lower price-to-earnings ratio than eBay, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for eBay and Coupang, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
eBay	2	16	14	1	2.42
Coupang	2	4	5	0	2.27

eBay currently has a consensus price target of $115.12, suggesting a potential upside of 2.61%. Coupang has a consensus price target of $24.06, suggesting a potential upside of 52.35%. Given Coupang’s higher probable upside, analysts plainly believe Coupang is more favorable than eBay.

Volatility & Risk

eBay has a beta of 1.33, indicating that its share price is 33% more volatile than the S&P 500. Comparatively, Coupang has a beta of 1.17, indicating that its share price is 17% more volatile than the S&P 500.

Institutional & Insider Ownership

87.5% of eBay shares are owned by institutional investors. Comparatively, 83.7% of Coupang shares are owned by institutional investors. 0.7% of eBay shares are owned by insiders. Comparatively, 12.8% of Coupang shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

eBay beats Coupang on 12 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 Coupang

Coupang, Inc., together with its subsidiaries owns and operates retail business through its mobile applications and Internet websites primarily in South Korea. The company operates through Product Commerce and Developing Offerings segments. It sells various products and services in the categories of home goods and décor products, apparel, beauty products, fresh food and groceries, sporting goods, electronics, and everyday consumables, as well as travel, and restaurant order and delivery services. In addition, the company offers Rocket Fresh, which offers fresh groceries; Coupang Eats, a restaurant ordering and delivery services; and Coupang Play, an online content streaming services, as well as advertising products. It also performs operations and support services in the United States, South Korea, Taiwan, Singapore, China, Japan, and India. Coupang, Inc. was incorporated in 2010 and is headquartered in Seattle, Washington.