Newegg Commerce (NASDAQ:NEGG) vs. PetMed Express (NASDAQ:PETS) Head to Head Analysis

Newegg Commerce (NASDAQ:NEGG) and PetMed Express (NASDAQ:PETS) are both small-cap retail/wholesale companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, profitability, institutional ownership, earnings, valuation, dividends and analyst recommendations.

Profitability

This table compares Newegg Commerce and PetMed Express’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Newegg Commerce	N/A	N/A	N/A
PetMed Express	-28.22%	-40.26%	-22.05%

Insider and Institutional Ownership

0.5% of Newegg Commerce shares are owned by institutional investors. Comparatively, 73.3% of PetMed Express shares are owned by institutional investors. 22.9% of Newegg Commerce shares are owned by insiders. Comparatively, 2.0% of PetMed Express shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

Newegg Commerce has a beta of 3.96, suggesting that its stock price is 296% more volatile than the S&P 500. Comparatively, PetMed Express has a beta of 0.64, suggesting that its stock price is 36% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for Newegg Commerce and PetMed Express, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Newegg Commerce	1	0	0	0	1.00
PetMed Express	2	1	0	0	1.33

PetMed Express has a consensus price target of $3.20, suggesting a potential upside of 0.00%. Given PetMed Express’ stronger consensus rating and higher probable upside, analysts clearly believe PetMed Express is more favorable than Newegg Commerce.

Earnings & Valuation

This table compares Newegg Commerce and PetMed Express”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Newegg Commerce	$1.24 million	1,557.19	-$43.33 million	N/A	N/A
PetMed Express	$226.97 million	0.30	-$6.27 million	($2.65)	-1.21

PetMed Express has higher revenue and earnings than Newegg Commerce.

Summary

Newegg Commerce beats PetMed Express on 6 of the 11 factors compared between the two stocks.

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.

About PetMed Express

PetMed Express, Inc., together with its subsidiaries, operates as a pet pharmacy in the United States. The company markets prescription and non-prescription pet medications, health products, and other supplies for dogs, cats, and horses. It offers non-prescription medications and supplies, such as flea and tick control products, bone and joint care products, vitamins, treats, nutritional supplements, hygiene products, and household pet supplies; and prescription medications, including heartworm preventatives, flea and tick preventatives, arthritis, dermatitis, thyroid, diabetes, pain medications, heart/blood pressure, and other specialty medications, as well as generic substitutes. The company also sells food, beds, crates, stairs, and other pet supplies. It sells its products through its Internet website; mobile app; customer support center; and direct mail/print, which includes brochures and postcards. The company was incorporated in 1996 and is headquartered in Delray Beach, Florida.