Overstock.com (NASDAQ: OSTK) and Cnova NV (NASDAQ:CNV) are both retail/wholesale companies, but which is the better stock? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, profitability, institutional ownership and earnings.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Overstock.com and Cnova NV, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Overstock.com 0 0 1 0 3.00
Cnova NV 0 1 0 0 2.00

Overstock.com presently has a consensus price target of $25.00, indicating a potential upside of 29.53%. Given Overstock.com’s stronger consensus rating and higher possible upside, research analysts clearly believe Overstock.com is more favorable than Cnova NV.

Insider & Institutional Ownership

42.7% of Overstock.com shares are owned by institutional investors. Comparatively, 3.0% of Cnova NV shares are owned by institutional investors. 28.9% of Overstock.com shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Overstock.com and Cnova NV’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Overstock.com $1.83 billion 0.26 -$1.70 million ($0.52) -37.12
Cnova NV N/A N/A N/A ($0.94) -5.64

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

Volatility and Risk

Overstock.com has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500. Comparatively, Cnova NV has a beta of 2.64, suggesting that its share price is 164% more volatile than the S&P 500.

Profitability

This table compares Overstock.com and Cnova NV’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Overstock.com -0.73% -6.36% -2.38%
Cnova NV -3.30% N/A -6.49%

Summary

Overstock.com beats Cnova NV on 9 of the 11 factors compared between the two stocks.

About Overstock.com

Overstock.com, Inc. is an online retailer and incubator of blockchain technology. Through its online retail business, the Company offers a range of price-competitive brand name, non-brand name and closeout products, including furniture, home decor, bedding and bath, housewares, jewelry and watches, apparel and designer accessories, health and beauty products, electronics and computers, and sporting goods. It operates Retail and Medici businesses. Its Retail business consists of its Direct and Partner segments. Its Other segment consists of Medici. The Company also sells various books, magazines, compact discs (CDs), digital versatile discs (DVDs) and video games. The Company sells these products and services through its Internet Websites located at www.overstock.com, www.o.co and www.o.biz. The Company’s other offerings include Worldstock Fair Trade, Main Street Revolution, Farmers Market, Pet Adoptions, Insurance and Supplier Oasis.

About Cnova NV

Cnova N.V. is an e-commerce company with its two markets in France and Brazil. The Company offers differentiated delivery and payment solutions. It operates through three segments: Cdiscount France, Cdiscount International and Cnova Brazil. The Cdiscount France segment is engaged in the retail sales of consumer products through Cdiscount.com and specialized Websites in France. The Cdiscount International segment is engaged in retail sales of consumer products through Websites created by Cdiscount S.A. (Cdiscount) outside of France. The Cnova Brazil segment is engaged in retail sales of consumer products through Websites in Brazil, including Extra.com.br, PontoFrio.com.br, CasasBahia.com.br, Barateiro.com.br, PartiuViagens.com.br, and wholesale activities and E-Hub. As of December 31, 2015, it offered over 29 million product offerings on its sites through its direct sales and marketplace businesses across various categories, such as consumer electronics, home appliances and computers.

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