Netshoes Cayman (NYSE: NETS) and LightInTheBox (NYSE:LITB) are both small-cap consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, risk, profitability and valuation.
Earnings and Valuation
This table compares Netshoes Cayman and LightInTheBox’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Netshoes Cayman||$533.75 million||0.35||-$46.35 million||N/A||N/A|
|LightInTheBox||$292.49 million||0.44||-$8.72 million||($0.13)||-14.38|
LightInTheBox has lower revenue, but higher earnings than Netshoes Cayman.
Institutional & Insider Ownership
61.5% of Netshoes Cayman shares are owned by institutional investors. Comparatively, 0.6% of LightInTheBox shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This is a breakdown of current recommendations and price targets for Netshoes Cayman and LightInTheBox, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Netshoes Cayman currently has a consensus target price of $21.88, indicating a potential upside of 260.97%. Given Netshoes Cayman’s higher possible upside, equities research analysts clearly believe Netshoes Cayman is more favorable than LightInTheBox.
This table compares Netshoes Cayman and LightInTheBox’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Netshoes Cayman beats LightInTheBox on 7 of the 9 factors compared between the two stocks.
About Netshoes Cayman
Netshoes (Cayman) Limited is a sports and lifestyle online retailer in Latin America. The Company focuses on offering an online consumer platform in Latin America. The Company operates through two segments: Brazil and International. The Company operates in Brazil, Argentina, and Mexico. The Brazil segment consists of retail sales of consumer products from all of its verticals (which includes sales of sporting goods and related garments, as well as fashion and beauty goods) carried out through its sites Netshoes.com.br and Zattini.com.br and third-party sites that it manages, as well as its business to business offline operation. The International segment consists of retail sales of consumer products (mainly sporting goods and related garments) from its sites Netshoes.com.ar and Netshoes.com.mx in Argentina and Mexico.
LightInTheBox Holding Co., Ltd. (LightInTheBox) is an online retail company that delivers products directly to consumers around the world. The Company offers a range of products through www.lightinthebox.com, www.miniinthebox.com and its other Websites, as well as mobile applications, which are available in approximately 30 languages. It has over 687,800 product listings. The Company also offers a range of other products in its other general merchandise product category. Its major markets are Europe and North America. The Company’s product offerings include apparel and other general merchandise. Its apparel category includes customized, special occasion apparel and fast fashion. Its other general merchandise category includes small accessories and gadgets, home and garden, electronics and communication devices and other products. The Company has additional Websites for specific products and geographic regions, including www.ouku.com for products targeting its Chinese customer base.
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