Head to Head Comparison: eBay (NASDAQ:EBAY) versus ITEX (OTCMKTS:ITEX)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
eBay	25.97%	29.11%	8.24%
ITEX	N/A	N/A	N/A

Risk and Volatility

eBay has a beta of 1.31, indicating that its stock price is 31% more volatile than the S&P 500. Comparatively, ITEX has a beta of 0.28, indicating that its stock price is 72% less volatile than the S&P 500.

Institutional and Insider Ownership

87.5% of eBay shares are held by institutional investors. 0.4% of eBay shares are held by insiders. Comparatively, 32.0% of ITEX shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares eBay and ITEX’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
eBay	$10.11 billion	2.64	$2.77 billion	$5.02	10.58
ITEX	N/A	N/A	N/A	N/A	N/A

eBay has higher revenue and earnings than ITEX.

Dividends

eBay pays an annual dividend of $1.08 per share and has a dividend yield of 2.0%. ITEX pays an annual dividend of $0.20 per share and has a dividend yield of 4.1%. eBay pays out 21.5% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of recent ratings for eBay and ITEX, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
eBay	1	11	7	0	2.32
ITEX	0	0	0	0	N/A

eBay currently has a consensus target price of $53.84, suggesting a potential upside of 1.36%. Given eBay’s higher probable upside, research analysts clearly believe eBay is more favorable than ITEX.

Summary

eBay beats ITEX on 8 of the 11 factors compared between the two stocks.

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.

About ITEX

ITEX Corporation operates a marketplace in which products and services are exchanged by marketplace members without exchanging cash in the United States. The company's marketplace provides a forum for members to purchase from and sell their products and services to other members using ITEX dollars instead of United States dollars. It also administers the marketplace, as well as provides record-keeping and payment transaction processing services. In addition, the company services its member businesses through its independent licensed brokers and franchise network. ITEX Corporation was founded in 1982 and is headquartered in Bellevue, Washington.