Analyzing CafePress (PRSS) & E Commerce China Dangdang (NYSE:DANG)

E Commerce China Dangdang (NYSE: DANG) and CafePress (NASDAQ:PRSS) are both technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, valuation, profitability and institutional ownership.

Institutional and Insider Ownership

25.7% of E Commerce China Dangdang shares are owned by institutional investors. Comparatively, 10.8% of CafePress shares are owned by institutional investors. 28.8% of CafePress shares are owned by company 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 & Valuation

This table compares E Commerce China Dangdang and CafePress’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
E Commerce China Dangdang N/A N/A N/A ($0.15) -44.20
CafePress $99.53 million 0.38 -$1.14 million ($0.42) -5.31

E Commerce China Dangdang has higher revenue, but lower earnings than CafePress. E Commerce China Dangdang is trading at a lower price-to-earnings ratio than CafePress, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and target prices for E Commerce China Dangdang and CafePress, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
E Commerce China Dangdang 0 0 0 0 N/A
CafePress 0 1 0 0 2.00

CafePress has a consensus target price of $3.50, indicating a potential upside of 56.95%. Given CafePress’ higher possible upside, analysts plainly believe CafePress is more favorable than E Commerce China Dangdang.

Volatility & Risk

E Commerce China Dangdang has a beta of 3.34, meaning that its stock price is 234% more volatile than the S&P 500. Comparatively, CafePress has a beta of 0.87, meaning that its stock price is 13% less volatile than the S&P 500.

Profitability

This table compares E Commerce China Dangdang and CafePress’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
E Commerce China Dangdang 8.34% 107.58% 17.19%
CafePress -7.11% -14.00% -10.78%

Summary

E Commerce China Dangdang beats CafePress on 6 of the 9 factors compared between the two stocks.

About E Commerce China Dangdang

E-Commerce China Dangdang Inc. is a business to consumer e-commerce company. The Company is focused on selling books online. The Company operates and manages its business in the segment of the provision of a single class of global services for the delivery of content and applications over the Internet. It offers over 1,200,000 book titles, including approximately 1,100,000 Chinese language titles. It offers other media products and general merchandise categories on its Internet platform, including fashion and apparel beauty and personal care products, home and lifestyle products, and baby, children and maternity products. It also offers the dangdang.com marketplace program, which allows third-party merchants to sell their general merchandise products alongside its products. Its Internet platform consists of its dangdang.com Website and its Dangdang mobile shopping application. Its Dangdang Reader application allows customers to browse for, download, purchase and read e-books.

About CafePress

CafePress Inc. is an online retailer of personalized products offering various gifts and accessories, including t-shirts and apparel, mugs and drinkware, and home goods, such as custom shower curtains and bed coverings. The Company conducts its business on its primary United States-based domain, CafePress.com, and also operates CafePress branded Websites for the markets in the United Kingdom, Canada and Australia. It also sells CafePress branded products through other online retail partners. Its products are customized with designs contributed through various means, including crowd-sourced user generated content, stock art licenses and licensed content relationships with entertainment companies and brands. Its facility in Louisville, Kentucky has technology and manufacturing processes that enables it to provide customized products that are individually built to order. The Company’s processes enable it to produce a range of merchandise.

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