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 $54.2B against $15.5B — 3.5× the size. Wayfair Inc. has negative trailing earnings, so its P/E is not meaningful; eBay Inc. trades at 26.4×. eBay Inc. grew revenue faster over the last twelve months: 15.7% against 7.89%. eBay Inc. has the higher net margin (16.9% vs −1.21%) and the higher return on invested capital (17.2% 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 26.40 n/m 23.90
P/S 4.42 1.18 0.71
P/B 12.40 n/m 1.80
Price to free cash flow 22.69 25.87 15.07
EV/EBITDA 19.65 30.60 17.34
EV/Sales 4.80 1.29 0.77
Earnings yield 3.79% (1.10%) 0.46%
Free cash flow yield 4.41% 3.87% (0.39%)

Profitability

Metric EBAY W Internet Retail median
Gross margin 72.17% 29.95% 44.04%
Operating margin 20.32% 2.14% 0.08%
Net margin 16.94% (1.21%) 1.15%
Free cash flow margin 19.46% 4.56% 0.00%
Return on equity 45.98% 5.74% 0.00%
Return on assets 11.73% (5.11%) 0.00%
Return on invested capital 17.17% 0.00% 0.00%

Growth

Metric EBAY W Internet Retail median
Revenue growth (TTM) 15.68% 7.89% 10.82%
EPS growth (last fiscal year) 10.15% 39.15% 19.82%
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 1.53 (0.92) 0.12
Current ratio 0.78 0.67 1.52
Net debt to EBITDA 1.43 5.11 (0.66)

Dividend

Metric EBAY W Internet Retail median
Dividend yield 0.99% — 1.66%
Payout ratio 0.27 — 0.27

Size

Metric EBAY W Internet Retail median
Market cap 54.15b 15.53b 566.40m

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