Contrasting eBay (NASDAQ:EBAY) and NextMart (OTCMKTS:NXMR)

NextMart (OTCMKTS:NXMR) and eBay (NASDAQ:EBAY) are both retail/wholesale companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, risk, analyst recommendations, valuation, institutional ownership and profitability.

Profitability

This table compares NextMart and eBay’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NextMart	N/A	N/A	N/A
eBay	18.30%	42.62%	11.23%

Analyst Recommendations

This is a summary of recent ratings and target prices for NextMart and eBay, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NextMart	0	0	0	0	0.00
eBay	1	18	14	0	2.39

eBay has a consensus target price of $96.68, indicating a potential upside of 14.07%. Given eBay’s stronger consensus rating and higher probable upside, analysts clearly believe eBay is more favorable than NextMart.

Risk and Volatility

NextMart has a beta of -0.05, meaning that its stock price is 105% less volatile than the S&P 500. Comparatively, eBay has a beta of 1.38, meaning that its stock price is 38% more volatile than the S&P 500.

Earnings & Valuation

This table compares NextMart and eBay”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NextMart	N/A	N/A	N/A	N/A	N/A
eBay	$11.10 billion	3.45	$1.98 billion	$4.60	18.42

eBay has higher revenue and earnings than NextMart.

Institutional and Insider Ownership

87.5% of eBay shares are owned by institutional investors. 56.4% of NextMart shares are owned by company insiders. Comparatively, 0.6% of eBay shares are owned 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

eBay beats NextMart on 9 of the 10 factors compared between the two stocks.

About NextMart

NextMart, Inc. does not have significant operations. Previously, it was involved in the art event and art media direct marketing; art-themed products design and marketing; and art themed real estate development businesses. The company was incorporated in 1972 and is based in Scottsdale, Arizona.

About eBay

eBay Inc., together with its subsidiaries, operates marketplace platforms that connect buyers and sellers in the United States, the United Kingdom, China, Germany, and internationally. The company’s marketplace platform includes its online marketplace at ebay.com, off-platform businesses, and the eBay suite of mobile apps. Its platforms enable users to list, sell, and buy various products. The company was founded in 1995 and is headquartered in San Jose, California.