Contrasting eBay (NASDAQ:EBAY) & Coupang (NYSE:CPNG)

eBay (NASDAQ:EBAY) and Coupang (NYSE:CPNG) are both large-cap consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, profitability, risk, institutional ownership, analyst recommendations, earnings and dividends.

Risk and Volatility

eBay has a beta of 1.33, suggesting that its share price is 33% more volatile than the S&P 500. Comparatively, Coupang has a beta of 1.17, suggesting that its share price is 17% more volatile than the S&P 500.

Valuation & Earnings

This table compares eBay and Coupang”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
eBay	$12.01 billion	3.97	$2.03 billion	$4.83	22.18
Coupang	$34.53 billion	0.74	$208.00 million	($0.43)	-33.03

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

Institutional & Insider Ownership

87.5% of eBay shares are held by institutional investors. Comparatively, 83.7% of Coupang shares are held by institutional investors. 0.7% of eBay shares are held by company insiders. Comparatively, 12.8% of Coupang shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
eBay	18.50%	47.88%	12.38%
Coupang	-2.16%	-8.77%	-2.00%

Analyst Recommendations

This is a summary of current ratings and price targets for eBay and Coupang, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
eBay	2	16	14	1	2.42
Coupang	2	4	5	0	2.27

eBay presently has a consensus price target of $115.12, indicating a potential upside of 7.45%. Coupang has a consensus price target of $24.06, indicating a potential upside of 69.40%. Given Coupang’s higher probable upside, analysts plainly believe Coupang is more favorable than eBay.

Summary

eBay beats Coupang on 12 of the 15 factors compared between the two stocks.

About eBay

eBay Inc., together with its subsidiaries, operates marketplace platforms that connect buyers and sellers in the United States, the United Kingdom, China, Germany, and internationally. The company’s marketplace platform includes its online marketplace at ebay.com, off-platform businesses, and the eBay suite of mobile apps. Its platforms enable users to list, sell, and buy various products. The company was founded in 1995 and is headquartered in San Jose, California.

About Coupang

Coupang, Inc., together with its subsidiaries owns and operates retail business through its mobile applications and Internet websites primarily in South Korea. The company operates through Product Commerce and Developing Offerings segments. It sells various products and services in the categories of home goods and décor products, apparel, beauty products, fresh food and groceries, sporting goods, electronics, and everyday consumables, as well as travel, and restaurant order and delivery services. In addition, the company offers Rocket Fresh, which offers fresh groceries; Coupang Eats, a restaurant ordering and delivery services; and Coupang Play, an online content streaming services, as well as advertising products. It also performs operations and support services in the United States, South Korea, Taiwan, Singapore, China, Japan, and India. Coupang, Inc. was incorporated in 2010 and is headquartered in Seattle, Washington.