Financial Survey: eBay (NASDAQ:EBAY) & Online Vacation Center (OTCMKTS:ONVC)

eBay (NASDAQ:EBAY) and Online Vacation Center (OTCMKTS:ONVC) are both retail/wholesale companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, institutional ownership, risk, dividends, earnings, profitability and analyst recommendations.

Analyst Recommendations

This is a summary of recent recommendations for eBay and Online Vacation Center, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
eBay	1	18	14	0	2.39
Online Vacation Center	0	0	0	0	0.00

eBay presently has a consensus price target of $107.10, indicating a potential downside of 5.23%. Given eBay’s stronger consensus rating and higher possible upside, equities analysts clearly believe eBay is more favorable than Online Vacation Center.

Institutional and Insider Ownership

87.5% of eBay shares are owned by institutional investors. 0.6% of eBay shares are owned by insiders. Comparatively, 71.3% of Online Vacation Center shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Risk and Volatility

eBay has a beta of 1.39, indicating that its share price is 39% more volatile than the S&P 500. Comparatively, Online Vacation Center has a beta of 1.73, indicating that its share price is 73% more volatile than the S&P 500.

Dividends

eBay pays an annual dividend of $1.24 per share and has a dividend yield of 1.1%. Online Vacation Center pays an annual dividend of $0.02 per share and has a dividend yield of 0.8%. eBay pays out 28.1% of its earnings in the form of a dividend. Online Vacation Center pays out 28.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. eBay has raised its dividend for 7 consecutive years. eBay is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares eBay and Online Vacation Center’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
eBay	17.58%	46.11%	11.97%
Online Vacation Center	2.53%	N/A	N/A

Valuation and Earnings

This table compares eBay and Online Vacation Center”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
eBay	$11.10 billion	4.52	$2.03 billion	$4.41	25.63
Online Vacation Center	$19.46 million	0.90	$490,000.00	$0.07	35.71

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

Summary

eBay beats Online Vacation Center on 14 of the 17 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 Online Vacation Center

Online Vacation Center Holdings Corp., through its subsidiaries, provides vacation travel and marketing services in the United States. The company offers vacation services for affluent retiree markets. It also involved in developing and selling river, ocean, and land vacation packages; publishes three travel newsletters under the Top Travel Deals, Spotlight, and TravelFlash brands; selling online of golf training aids; and operates a cruises franchise that focused on travel sales through mobile agents, as well as a website that connects travelers to purchase hotel, resort, and vacation packages. The company was founded in 1972 and is based in Fort Lauderdale, Florida.