eBay Inc. (EBAY) vs Wayfair Inc. (W)

eBay Inc. and Wayfair Inc. are both Internet Retail companies. eBay Inc. is the larger, with a market value of $48.0B against $13.4B — 3.6× the size. Wayfair Inc. has negative trailing earnings, so its P/E is not meaningful; eBay Inc. trades at 21.8×. eBay Inc. grew revenue faster over the last twelve months: 14.7% against 7.46%. eBay Inc. has the higher net margin (18.6% vs −2.49%) and the higher return on invested capital (19.1% vs 0.00%). Across the 20 metrics below, eBay Inc. leads on 15 and Wayfair Inc. on 5.

Valuation

Metric EBAY W Internet Retail median
P/E 21.84 n/m 22.73
P/S 4.00 1.01 0.64
P/B 10.29 n/m 1.65
Price to free cash flow 19.78 23.08 14.11
EV/EBITDA 17.47 29.25 15.68
EV/Sales 4.28 1.13 0.76
Earnings yield 4.58% (2.50%) (0.11%)
Free cash flow yield 5.06% 4.33% 0.00%

Profitability

Metric EBAY W Internet Retail median
Gross margin 72.05% 30.05% 43.51%
Operating margin 20.60% 1.67% 0.08%
Net margin 18.57% (2.49%) 0.56%
Free cash flow margin 20.22% 4.36% 0.00%
Return on equity 47.38% 11.66% 0.00%
Return on assets 12.43% (10.26%) 0.00%
Return on invested capital 19.11% 0.00% 0.00%

Growth

Metric EBAY W Internet Retail median
Revenue growth (TTM) 14.69% 7.46% 10.60%
EPS growth (last fiscal year) 10.15% 39.15% —
Revenue growth, 5-year CAGR 4.53% (2.51%) 10.81%
Net income growth, 5-year CAGR (18.55%) 0.00% 0.00%

Health

Metric EBAY W Internet Retail median
Debt to equity 1.44 (1.00) 0.13
Current ratio 1.02 0.74 1.49
Net debt to EBITDA 1.43 5.11 (0.25)

Dividend

Metric EBAY W Internet Retail median
Dividend yield 2.37% — —
Payout ratio 0.40 0.00 0.00

Size

Metric EBAY W Internet Retail median
Market cap 47.97b 13.38b 443.85m

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