Critical Comparison: Boohoo Group (OTCMKTS:BHOOY) versus Wayfair (NYSE:W)

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

Profitability

This table compares Boohoo Group and Wayfair’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Boohoo Group	N/A	N/A	N/A
Wayfair	-2.41%	-2.20%	1.92%

Institutional & Insider Ownership

89.7% of Wayfair shares are held by institutional investors. 18.4% of Wayfair shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Boohoo Group and Wayfair”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Boohoo Group	$1.23 billion	0.30	-$144.75 million	N/A	N/A
Wayfair	$12.66 billion	1.00	-$313.00 million	($2.34)	-40.78

Boohoo Group has higher earnings, but lower revenue than Wayfair.

Volatility & Risk

Boohoo Group has a beta of 0.36, meaning that its share price is 64% less volatile than the S&P 500. Comparatively, Wayfair has a beta of 3.02, meaning that its share price is 202% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for Boohoo Group and Wayfair, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Boohoo Group	0	0	0	0	0.00
Wayfair	1	10	18	1	2.63

Wayfair has a consensus target price of $99.68, suggesting a potential upside of 4.45%. Given Wayfair’s stronger consensus rating and higher probable upside, analysts plainly believe Wayfair is more favorable than Boohoo Group.

Summary

Wayfair beats Boohoo Group on 10 of the 13 factors compared between the two stocks.

About Boohoo Group

boohoo group plc, through its subsidiaries, operates as an online clothing retailer in the United Kingdom, rest of Europe, the United States, and internationally. The company designs, sources, markets, and sells clothing, shoes, accessories, and beauty products for 16-to-45-year age customers. It provides its products under the boohoo, boohooMAN, PrettyLittleThing, Nasty Gal, MissPap, Karen Millen, Coast, Oasis, Warehouse, Dorothy Perkins, Wallis, Burton, and Debenhams brands. The company was founded in 2006 and is headquartered in Manchester, the United Kingdom.

About Wayfair

Wayfair Inc. provides e-commerce business in the United States and internationally. The company offers approximately thirty million products for the home sector. It offers online selections of furniture, décor, housewares, and home improvement products through its sites consisting of Wayfair, Joss & Main, AllModern, Birch Lane, Perigold, and Wayfair Professional. The company offers its products under the Three Posts and Mercury Row brand name. The company was founded in 2002 and is headquartered in Boston, Massachusetts.