Analyzing E Commerce China Dangdang (DANG) & eBay (EBAY)

E Commerce China Dangdang (NYSE: DANG) and eBay (NASDAQ:EBAY) are both technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, valuation, dividends, risk and profitability.

Profitability

This table compares E Commerce China Dangdang and eBay’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
E Commerce China Dangdang 8.34% 107.58% 17.19%
eBay 80.93% 17.50% 7.32%

Analyst Recommendations

This is a breakdown of current recommendations for E Commerce China Dangdang and eBay, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
E Commerce China Dangdang 0 0 0 0 N/A
eBay 2 18 16 0 2.39

eBay has a consensus price target of $37.38, suggesting a potential downside of 2.33%. Given eBay’s higher probable upside, analysts clearly believe eBay is more favorable than E Commerce China Dangdang.

Institutional and Insider Ownership

25.7% of E Commerce China Dangdang shares are held by institutional investors. Comparatively, 84.9% of eBay shares are held by institutional investors. 6.8% of eBay shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares E Commerce China Dangdang and eBay’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
E Commerce China Dangdang N/A N/A N/A ($0.15) -44.20
eBay $9.16 billion 4.47 $2.88 billion $6.62 5.78

eBay has higher revenue and earnings than E Commerce China Dangdang. E Commerce China Dangdang is trading at a lower price-to-earnings ratio than eBay, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

E Commerce China Dangdang has a beta of 3.34, suggesting that its stock price is 234% more volatile than the S&P 500. Comparatively, eBay has a beta of 1.34, suggesting that its stock price is 34% more volatile than the S&P 500.

Summary

eBay beats E Commerce China Dangdang on 7 of the 10 factors compared between the two stocks.

E Commerce China Dangdang Company Profile

E-Commerce China Dangdang Inc. is a business to consumer e-commerce company. The Company is focused on selling books online. The Company operates and manages its business in the segment of the provision of a single class of global services for the delivery of content and applications over the Internet. It offers over 1,200,000 book titles, including approximately 1,100,000 Chinese language titles. It offers other media products and general merchandise categories on its Internet platform, including fashion and apparel beauty and personal care products, home and lifestyle products, and baby, children and maternity products. It also offers the dangdang.com marketplace program, which allows third-party merchants to sell their general merchandise products alongside its products. Its Internet platform consists of its dangdang.com Website and its Dangdang mobile shopping application. Its Dangdang Reader application allows customers to browse for, download, purchase and read e-books.

eBay Company Profile

eBay Inc. (eBay) is a commerce company, which operates through its Marketplace, StubHub and Classifieds platforms. The Company connects buyers and sellers around the world. Its platforms enable sellers around the world to organize and offer their inventory for sale, and buyers to find and purchase it. Its platforms are accessible through an online experience (desktop and laptop computers), from mobile devices (smartphones and tablets) and by application programming interface (API) (platform access for third-party software developers). The Company’s Marketplace platforms include its online marketplace located at www.ebay.com, localized counterparts and the eBay mobile applications. The Company’s StubHub platforms include its online ticket platform located at www.stubhub.com, the StubHub mobile applications and Ticketbis. The Company’s Classifieds platforms include a collection of brands, such as Mobile.de, Kijiji, Gumtree, Marktplaats, eBay Kleinanzeigen and others.

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