Financial Survey: GigaCloud Technology (NASDAQ:GCT) vs. ContextLogic (NASDAQ:WISH)

GigaCloud Technology (NASDAQ:GCT – Get Rating) and ContextLogic (NASDAQ:WISH – Get Rating) are both small-cap business services companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, dividends, profitability, risk and valuation.

Insider and Institutional Ownership

19.9% of GigaCloud Technology shares are held by institutional investors. Comparatively, 34.6% of ContextLogic shares are held by institutional investors. 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 company will outperform the market over the long term.

Valuation & Earnings

This table compares GigaCloud Technology and ContextLogic’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GigaCloud Technology	$490.07 million	0.44	$24.41 million	$0.60	8.73
ContextLogic	$478.00 million	0.36	-$384.00 million	($17.94)	-0.42

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

Analyst Ratings

This is a summary of current recommendations for GigaCloud Technology and ContextLogic, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GigaCloud Technology	0	0	1	0	3.00
ContextLogic	1	0	1	0	2.00

GigaCloud Technology presently has a consensus target price of $26.00, indicating a potential upside of 396.18%. ContextLogic has a consensus target price of $9.00, indicating a potential upside of 20.81%. Given GigaCloud Technology’s stronger consensus rating and higher possible upside, research analysts clearly believe GigaCloud Technology is more favorable than ContextLogic.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
GigaCloud Technology	N/A	N/A	N/A
ContextLogic	-86.40%	-72.85%	-45.52%

Summary

GigaCloud Technology beats ContextLogic on 10 of the 12 factors compared between the two stocks.

About GigaCloud Technology

(Get Rating)

GigaCloud Technology Inc. provides end-to-end B2B ecommerce solutions for large parcel merchandise. Its marketplace connects manufacturers primarily in Asia with resellers in the United States, Asia, and Europe to execute cross-border transactions across furniture, home appliance, fitness equipment, and other large parcel categories. The company was formerly known as Oriental Standard Human Resources Holdings Limited and changed its name to GigaCloud Technology Inc. in February 2021. GigaCloud Technology Inc. was founded in 2006 and is headquartered in Suzhou, China.

About ContextLogic

(Get Rating)

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 users to merchants. It also provides marketplace and logistics services to merchants. The company was incorporated in 2010 and is headquartered in San Francisco, California.