Critical Contrast: ContextLogic (NASDAQ:WISH) and eBay (NASDAQ:EBAY)

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

Profitability

This table compares eBay and ContextLogic’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%
ContextLogic	-131.05%	-115.96%	-62.36%

Volatility & Risk

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

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
eBay	2	17	14	1	2.41
ContextLogic	0	0	0	0	0.00

eBay presently has a consensus target price of $117.24, suggesting a potential upside of 12.72%. Given eBay’s stronger consensus rating and higher probable upside, research analysts plainly believe eBay is more favorable than ContextLogic.

Earnings & Valuation

This table compares eBay and ContextLogic”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
eBay	$12.01 billion	3.85	$2.03 billion	$4.83	21.53
ContextLogic	$287.00 million	0.98	-$317.00 million	($11.98)	-0.96

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.

Insider and Institutional Ownership

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

Summary

eBay beats ContextLogic on 13 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 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.