Financial Comparison: D-MARKET Electronic Services & Trading (NASDAQ:HEPS) versus Hour Loop (NASDAQ:HOUR)

D-MARKET Electronic Services & Trading (NASDAQ:HEPS) and Hour Loop (NASDAQ:HOUR) are both small-cap consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, profitability, dividends, risk and analyst recommendations.

Analyst Ratings

This is a summary of recent ratings and recommmendations for D-MARKET Electronic Services & Trading and Hour Loop, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
D-MARKET Electronic Services & Trading	1	2	0	0	1.67
Hour Loop	0	1	0	0	2.00

D-MARKET Electronic Services & Trading presently has a consensus price target of $3.07, indicating a potential upside of 13.28%. Given D-MARKET Electronic Services & Trading’s higher probable upside, equities analysts clearly believe D-MARKET Electronic Services & Trading is more favorable than Hour Loop.

Institutional and Insider Ownership

40.5% of D-MARKET Electronic Services & Trading shares are held by institutional investors. Comparatively, 0.3% of Hour Loop shares are held by institutional investors. 36.3% of D-MARKET Electronic Services & Trading shares are held by insiders. Comparatively, 95.0% of Hour Loop shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares D-MARKET Electronic Services & Trading and Hour Loop’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
D-MARKET Electronic Services & Trading	-7.78%	-776.28%	-21.12%
Hour Loop	1.14%	22.31%	6.60%

Earnings and Valuation

This table compares D-MARKET Electronic Services & Trading and Hour Loop”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
D-MARKET Electronic Services & Trading	$2.15 billion	0.54	-$144.76 million	($0.51)	-5.31
Hour Loop	$142.44 million	0.38	$1.71 million	$0.04	38.12

Hour Loop has lower revenue, but higher earnings than D-MARKET Electronic Services & Trading. D-MARKET Electronic Services & Trading is trading at a lower price-to-earnings ratio than Hour Loop, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

D-MARKET Electronic Services & Trading has a beta of 2.29, meaning that its stock price is 129% more volatile than the S&P 500. Comparatively, Hour Loop has a beta of 1.41, meaning that its stock price is 41% more volatile than the S&P 500.

Summary

Hour Loop beats D-MARKET Electronic Services & Trading on 8 of the 13 factors compared between the two stocks.

About D-MARKET Electronic Services & Trading

D-Market Elektronik Hizmetler ve Ticaret A.S. operates e-commerce platforms in Turkey. The company operates www.hepsiburada.com, a retail website that provides its retail customers a range of merchandise, including electronics and non-electronics products, such as books, sports, toys, kids and baby products, cosmetics, furniture, etc. It also offers Hepsiburada Market, an app-in-app initiative and on-demand delivery service that delivers groceries and water; HepsiJet that provides last-mile delivery services; HepsiLojistik, which offers storage and fulfillment services; HepsiMat, an offline network of pick-up and drop-off point; HepsiAd that provides advertising service; HepsiGlobal for discovering and purchasing products from international merchants online; Hepsipay, which offers an e-money and payment services; and Hepsiburada Seyahat for buying airline tickets online. The company was incorporated in 2000 and is headquartered in Istanbul, Turkey.

About Hour Loop

Hour Loop, Inc., an online retailer, engages in e-commerce retailing in the United States. The company sells products in various categories, including home/garden décor, toys, kitchenware, apparels, and electronics products. It sells its products through hourloop.com, as well as third-party marketplaces. Hour Loop, Inc. was founded in 2013 and is headquartered in Redmond, Washington.