Online Vacation Center (OTCMKTS:ONVC – Get Free Report) and eBay (NASDAQ:EBAY – Get Free Report) are both retail/wholesale companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.
Institutional and Insider Ownership
87.5% of eBay shares are owned by institutional investors. 71.3% of Online Vacation Center shares are owned by insiders. Comparatively, 0.6% of eBay shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares Online Vacation Center and eBay”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Online Vacation Center | $19.46 million | 0.75 | $490,000.00 | $0.07 | 30.00 |
| eBay | $11.10 billion | 4.37 | $2.03 billion | $4.41 | 24.80 |
eBay has higher revenue and earnings than Online Vacation Center. eBay is trading at a lower price-to-earnings ratio than Online Vacation Center, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Online Vacation Center has a beta of 1.7, suggesting that its stock price is 70% more volatile than the S&P 500. Comparatively, eBay has a beta of 1.39, suggesting that its stock price is 39% more volatile than the S&P 500.
Dividends
Online Vacation Center pays an annual dividend of $0.02 per share and has a dividend yield of 1.0%. eBay pays an annual dividend of $1.24 per share and has a dividend yield of 1.1%. Online Vacation Center pays out 28.6% of its earnings in the form of a dividend. eBay pays out 28.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. eBay has raised its dividend for 7 consecutive years. eBay is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Profitability
This table compares Online Vacation Center and eBay’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Online Vacation Center | 2.63% | N/A | N/A |
| eBay | 17.58% | 46.11% | 11.97% |
Analyst Recommendations
This is a summary of current ratings and recommmendations for Online Vacation Center and eBay, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Online Vacation Center | 0 | 0 | 0 | 0 | 0.00 |
| eBay | 1 | 19 | 13 | 0 | 2.36 |
eBay has a consensus target price of $107.84, suggesting a potential downside of 1.38%. Given eBay’s stronger consensus rating and higher possible upside, analysts clearly believe eBay is more favorable than Online Vacation Center.
Summary
eBay beats Online Vacation Center on 14 of the 17 factors compared between the two stocks.
About Online Vacation Center
Online Vacation Center Holdings Corp., through its subsidiaries, provides vacation travel and marketing services in the United States. The company offers vacation services for affluent retiree markets. It also involved in developing and selling river, ocean, and land vacation packages; publishes three travel newsletters under the Top Travel Deals, Spotlight, and TravelFlash brands; selling online of golf training aids; and operates a cruises franchise that focused on travel sales through mobile agents, as well as a website that connects travelers to purchase hotel, resort, and vacation packages. The company was founded in 1972 and is based in Fort Lauderdale, Florida.
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.
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