Contrasting SEA (NYSE:SE) & eBay (NASDAQ:EBAY)

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SEA	$22.94 billion	2.18	$1.58 billion	$2.59	31.61
eBay	$11.10 billion	4.82	$2.03 billion	$4.83	24.90

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SEA	5.98%	13.54%	5.59%
eBay	18.50%	47.88%	12.38%

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SEA	0	3	10	1	2.86
eBay	2	16	12	2	2.44

SEA currently has a consensus price target of $149.40, indicating a potential upside of 82.47%. eBay has a consensus price target of $115.84, indicating a potential downside of 3.67%. Given SEA’s stronger consensus rating and higher probable upside, research analysts clearly believe SEA is more favorable than eBay.

Insider & Institutional Ownership

59.5% of SEA shares are owned by institutional investors. Comparatively, 87.5% of eBay shares are owned by institutional investors. 0.2% of SEA shares are owned by insiders. Comparatively, 0.7% of eBay shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility and Risk

SEA has a beta of 1.54, suggesting that its share price is 54% more volatile than the S&P 500. Comparatively, eBay has a beta of 1.33, suggesting that its share price is 33% more volatile than the S&P 500.

Summary

eBay beats SEA on 10 of the 15 factors compared between the two stocks.

About SEA

Sea Ltd. is an internet and mobile platform company, which engages in the provision of online gaming services. It operates through the following segments: Digital Entertainment, E-Commerce, and Digital Financial Services. The Digital Entertainment segment offers and develops mobile and PC online games. The E-Commerce segment manages a third-party marketplace through the Shopee mobile app and websites that connect buyers and sellers. The Digital Financial Services segment includes a variety of payment services and loans to individuals and businesses through SeaMoney. Sea was founded by Xiao Dong Li, Gang Ye, and Jing Ye Chen on May 8, 2009 and is headquartered in Singapore.

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.