eBay vs Walmart Which Performs Better?

eBay and Walmart are two retail giants that have established themselves as key players in the e-commerce industry. eBay, a pioneer in online auctions and consumer-to-consumer sales, offers a platform for individuals and businesses to buy and sell a wide range of products. On the other hand, Walmart, a traditional brick-and-mortar retailer, has successfully adapted to the digital age by expanding its online presence. Both companies offer investors opportunities for growth and diversification in the ever-evolving retail market.

eBay or Walmart?

When comparing eBay and Walmart, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between eBay and Walmart.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. eBay has a dividend yield of 1.73%, while Walmart has a dividend yield of 0.96%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. eBay reports a 5-year dividend growth of 0.00% year and a payout ratio of 26.44%. On the other hand, Walmart reports a 5-year dividend growth of 1.85% year and a payout ratio of 41.18%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with eBay P/E ratio at 14.81 and Walmart's P/E ratio at 43.58. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. eBay P/B ratio is 5.52 while Walmart's P/B ratio is 8.03.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, eBay has seen a 5-year revenue growth of 0.74%, while Walmart's is 0.34%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with eBay's ROE at 34.22% and Walmart's ROE at 18.91%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $61.07 for eBay and $83.94 for Walmart. Over the past year, eBay's prices ranged from $38.98 to $67.80, with a yearly change of 73.94%. Walmart's prices fluctuated between $49.85 and $85.79, with a yearly change of 72.11%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.