eBay (NASDAQ: EBAY) and Borderfree (NASDAQ:BRDR) are both retail/wholesale companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, profitability, dividends, earnings and analyst recommendations.

Profitability

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

Net Margins Return on Equity Return on Assets
eBay 80.45% 15.69% 6.90%
Borderfree -18.56% -16.07% -12.01%

Insider and Institutional Ownership

84.9% of eBay shares are owned by institutional investors. 6.8% of eBay shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares eBay and Borderfree’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
eBay $9.16 billion 4.39 $2.88 billion $6.74 5.58
Borderfree N/A N/A N/A N/A N/A

eBay has higher revenue and earnings than Borderfree.

Analyst Ratings

This is a summary of current ratings and target prices for eBay and Borderfree, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
eBay 2 20 16 0 2.37
Borderfree 0 0 0 0 N/A

eBay currently has a consensus price target of $38.44, suggesting a potential upside of 2.21%. Given eBay’s higher possible upside, equities analysts plainly believe eBay is more favorable than Borderfree.

Summary

eBay beats Borderfree on 8 of the 8 factors compared between the two stocks.

About eBay

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.

About Borderfree

Borderfree, Inc. (Borderfree) is engaged in the e-commerce, operating a technology and services platform to enable the United States retailers to transact with international shoppers. The retailers and brands, which the Company refers to as their customers, that integrate the Company’s solution use the Borderfree platform to develop an e-commerce business across Web, mobile and in-store channels. Borderfree manages all aspects of the international shopping experience, including site localization, multi-currency pricing, payment processing, fraud management, landed cost calculation, customs clearance and brokerage, and global logistics services. The Borderfree platform consists of technology, data, know-how and services that span: consumer experience localization; payments, compliance and risk management; global transportation and logistics; post-delivery customer care, and global consumer insights and marketing.

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