D-MARKET Electronic Services & Trading (NASDAQ:HEPS) and Monotaro (OTCMKTS:MONOY) Critical Comparison

D-MARKET Electronic Services & Trading (NASDAQ:HEPS) and Monotaro (OTCMKTS:MONOY) are both retail/wholesale companies, but which is the better investment? We will compare the two companies based on the strength of their risk, earnings, institutional ownership, dividends, analyst recommendations, valuation and profitability.

Analyst Recommendations

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

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

D-MARKET Electronic Services & Trading currently has a consensus price target of $3.50, indicating a potential upside of 22.81%. Given D-MARKET Electronic Services & Trading’s higher probable upside, equities research analysts plainly believe D-MARKET Electronic Services & Trading is more favorable than Monotaro.

Insider and Institutional Ownership

40.5% of D-MARKET Electronic Services & Trading shares are held by institutional investors. Comparatively, 0.1% of Monotaro shares are held by institutional investors. 36.3% of D-MARKET Electronic Services & Trading shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
D-MARKET Electronic Services & Trading	-4.22%	-62.27%	-7.79%
Monotaro	9.36%	33.81%	24.17%

Earnings and Valuation

This table compares D-MARKET Electronic Services & Trading and Monotaro”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
D-MARKET Electronic Services & Trading	$1.74 billion	0.53	-$48.95 million	($0.18)	-15.83
Monotaro	$1.91 billion	4.21	$173.82 million	$0.48	33.33

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

Volatility and Risk

D-MARKET Electronic Services & Trading has a beta of 2.33, indicating that its stock price is 133% more volatile than the S&P 500. Comparatively, Monotaro has a beta of 0.84, indicating that its stock price is 16% less volatile than the S&P 500.

Summary

Monotaro beats D-MARKET Electronic Services & Trading on 8 of the 12 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 Monotaro

MonotaRO Co., Ltd., together with its subsidiaries, operates an online MRO products store in Japan and internationally. The company offers safety protective equipment, work clothes, and safety shoes; logistics, storage, and packing supplies; tapes; safety, disaster prevention, and crime prevention products; safety signs; ship and fishing supplies; office supplies; office furniture/lighting/cleaning supplies; cutting tools and abrasives; measurement and surveying equipment; hand tools/electric and pneumatic tools; sprays, oils, greases, and paints; adhesives and repair materials; welding supplies; and piping and water related components/pumps/pneumatic and hydraulic equipment/hoses. It also provides mechanical parts; control equipment; soldering and anti-static products; architectural hardware, building materials, painting, and interior supplies; air conditioning and electrical equipment; electrical materials; screws, bolts, nails, and materials; automotive supplies; truck supplies; motorcycle supplies; bicycle supplies; scientific research and development supplies; clean room supplies; kitchen equipment and store supplies; agricultural and gardening supplies; and medical and nursing supplies. It serves factories, construction, automobile maintenance, and other industries. The company was formerly known as Sumisho Grainger Co., Ltd. and changed its name to MonotaRO Co., Ltd. in February 2006. The company was incorporated in 2000 and is headquartered in Osaka, Japan. MonotaRO Co., Ltd. operates as a subsidiary of Grainger Global Holdings, Inc.