Financial Analysis: Newegg Commerce (NASDAQ:NEGG) vs. Prosus (OTCMKTS:PROSY)

Prosus (OTCMKTS:PROSY) and Newegg Commerce (NASDAQ:NEGG) are both retail/wholesale companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, risk, earnings, valuation, profitability, analyst recommendations and dividends.

Analyst Ratings

This is a summary of recent ratings and target prices for Prosus and Newegg Commerce, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Prosus	0	0	2	1	3.33
Newegg Commerce	1	0	0	0	1.00

Risk and Volatility

Prosus has a beta of 0.68, meaning that its share price is 32% less volatile than the S&P 500. Comparatively, Newegg Commerce has a beta of 3.53, meaning that its share price is 253% more volatile than the S&P 500.

Profitability

This table compares Prosus and Newegg Commerce’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Prosus	N/A	N/A	N/A
Newegg Commerce	N/A	N/A	N/A

Earnings & Valuation

This table compares Prosus and Newegg Commerce”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Prosus	$6.17 billion	56.98	$12.37 billion	N/A	N/A
Newegg Commerce	$1.31 billion	2.05	-$43.33 million	N/A	N/A

Prosus has higher revenue and earnings than Newegg Commerce.

Institutional & Insider Ownership

0.0% of Prosus shares are held by institutional investors. Comparatively, 0.4% of Newegg Commerce shares are held by institutional investors. 0.5% of Prosus shares are held by company insiders. Comparatively, 22.9% of Newegg Commerce shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Prosus beats Newegg Commerce on 6 of the 9 factors compared between the two stocks.

About Prosus

Prosus N.V. engages in the e-commerce and internet businesses in Asia, Europe, Latin America, North America, and internationally. It operates internet platforms, such as classifieds, payments and fintech, food delivery, education technology, etail, ventures, social, and other internet platforms. The company was formerly known as Myriad International Holdings N.V. and changed its name to Prosus N.V. in August 2019. Prosus N.V. was incorporated in 1994 and is headquartered in Amsterdam, the Netherlands. Prosus N.V. operates as a subsidiary of Naspers Limited.

About Newegg Commerce

Newegg Commerce, Inc. operates as an electronics-focused e-retailer in North America. The company offers desktops, laptops, gaming laptops, peripherals, and accessories; CPU/processors, graphic cards, motherboards, storage devices, and computer accessories; home video and audio, headphones, pro audio/video, cellphones, wearables, and digital cameras; display and printing, office technology furniture, office supplies, and mailing and inventory supplies; and software, digital downloads, warranty and services, 3rd party gift cards, and entertainment products. It also provides Xbox, PlayStation, home networking, server and components, smart home products, car electronics, motorcycles and ATV, wheels and tires, home improvement tools, home appliances, kitchen utensils, outdoor and garden furniture, fitness, and sports and health products. The company operates B2C platforms, including Newegg.com, Newegg.ca, and Newegg Global, as well as mobile apps; and B2B platforms comprising NeweggBusiness.com. The company was founded in 2001 and is headquartered in City of Industry, California. Newegg Commerce, Inc. is a subsidiary of Hangzhou Liaison Interactive Information Technology Co., Ltd.