Wayfair (NYSE: W) and Netshoes (Cayman) Limited (NYSE:NETS) are both retail/wholesale companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Profitability

This table compares Wayfair and Netshoes (Cayman) Limited’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Wayfair -5.06% -658.45% -25.38%
Netshoes (Cayman) Limited -7.62% -41.82% -11.18%

Earnings and Valuation

This table compares Wayfair and Netshoes (Cayman) Limited’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Wayfair $3.38 billion 1.73 -$194.37 million ($2.50) -26.67
Netshoes (Cayman) Limited $533.75 million 0.41 -$46.35 million N/A N/A

Netshoes (Cayman) Limited has higher revenue, but lower earnings than Wayfair.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Wayfair and Netshoes (Cayman) Limited, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Wayfair 0 7 15 0 2.68
Netshoes (Cayman) Limited 0 1 3 0 2.75

Wayfair presently has a consensus price target of $76.01, suggesting a potential upside of 13.99%. Netshoes (Cayman) Limited has a consensus price target of $21.88, suggesting a potential upside of 208.10%. Given Netshoes (Cayman) Limited’s stronger consensus rating and higher probable upside, analysts plainly believe Netshoes (Cayman) Limited is more favorable than Wayfair.

Institutional and Insider Ownership

70.1% of Wayfair shares are owned by institutional investors. Comparatively, 64.0% of Netshoes (Cayman) Limited shares are owned by institutional investors. 56.9% of Wayfair shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Wayfair beats Netshoes (Cayman) Limited on 6 of the 11 factors compared between the two stocks.

About Wayfair

Wayfair Inc. (Wayfair) offers browsing, merchandising and product discovery for a range of products from various suppliers. The Company operates through two segments: U.S. and International. The U.S. segment consists of amounts earned through product sales through the Company’s five sites in the United States and through sites operated by third parties in the United States. The International segment consists of amounts earned through product sales through its international sites. It has an online selection of furniture, decor, decorative accents, housewares, seasonal decor and other home goods. As of December 31, 2016, it had offered five sites, including Websites, mobile-optimized Websites and mobile applications: Wayfair, Joss & Main, AllModern, DwellStudio and Birch Lane. Wayfair is an online destination for all things home. Birch Lane offers a collection of furnishings and home decor. Its sites feature certain products under its house brands, such as Three Posts and Mercury Row.

About Netshoes (Cayman) Limited

Netshoes (Cayman) Limited is a sports and lifestyle online retailer in Latin America. The Company focuses on offering an online consumer platform in Latin America. The Company operates through two segments: Brazil and International. The Company operates in Brazil, Argentina, and Mexico. The Brazil segment consists of retail sales of consumer products from all of its verticals (which includes sales of sporting goods and related garments, as well as fashion and beauty goods) carried out through its sites Netshoes.com.br and Zattini.com.br and third-party sites that it manages, as well as its business to business offline operation. The International segment consists of retail sales of consumer products (mainly sporting goods and related garments) from its sites Netshoes.com.ar and Netshoes.com.mx in Argentina and Mexico.

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