Reviewing eBay (NASDAQ:EBAY) & ContextLogic (NASDAQ:WISH)

ContextLogic (NASDAQ:WISH) and eBay (NASDAQ:EBAY) are both consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, dividends, risk, profitability and valuation.

Earnings & Valuation

This table compares ContextLogic and eBay”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ContextLogic	$287.00 million	0.89	-$317.00 million	($11.98)	-0.88
eBay	$11.10 billion	4.19	$2.03 billion	$4.83	21.65

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

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for ContextLogic and eBay, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ContextLogic	0	0	0	0	0.00
eBay	2	17	14	0	2.36

eBay has a consensus price target of $117.09, suggesting a potential upside of 11.97%. Given eBay’s stronger consensus rating and higher possible upside, analysts plainly believe eBay is more favorable than ContextLogic.

Risk and Volatility

ContextLogic has a beta of 2.09, suggesting that its share price is 109% more volatile than the S&P 500. Comparatively, eBay has a beta of 1.37, suggesting that its share price is 37% more volatile than the S&P 500.

Institutional & Insider Ownership

46.0% of ContextLogic shares are held by institutional investors. Comparatively, 87.5% of eBay shares are held by institutional investors. 8.2% of ContextLogic shares are held by insiders. Comparatively, 0.7% of eBay shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ContextLogic	-131.05%	-115.96%	-62.36%
eBay	18.50%	47.88%	12.38%

Summary

eBay beats ContextLogic on 12 of the 14 factors compared between the two stocks.

About ContextLogic

ContextLogic Inc. operates as a mobile ecommerce company in Europe, North America, South America, and internationally. The company operates Wish, an ecommerce platform that connects consumers to merchants. It also provides marketplace and logistics services to merchants. ContextLogic Inc. was incorporated in 2010 and is headquartered in San Francisco, California.

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.