ContextLogic (NASDAQ:WISH – Get Free Report) and Zalando (OTCMKTS:ZLDSF – Get Free Report) are both retail/wholesale companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, dividends, valuation and institutional ownership.
Profitability
This table compares ContextLogic and Zalando’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
ContextLogic | -113.62% | -102.51% | -57.85% |
Zalando | N/A | N/A | N/A |
Institutional and Insider Ownership
46.1% of ContextLogic shares are owned by institutional investors. 8.2% of ContextLogic shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Analyst Ratings
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
ContextLogic | 0 | 2 | 0 | 0 | 2.00 |
Zalando | 0 | 0 | 0 | 0 | N/A |
ContextLogic presently has a consensus price target of $9.00, suggesting a potential upside of 55.71%. Given ContextLogic’s higher possible upside, equities research analysts clearly believe ContextLogic is more favorable than Zalando.
Earnings & Valuation
This table compares ContextLogic and Zalando’s gross revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
ContextLogic | $287.00 million | 0.49 | -$317.00 million | ($13.38) | -0.43 |
Zalando | N/A | N/A | N/A | $0.05 | 574.30 |
Zalando has lower revenue, but higher earnings than ContextLogic. ContextLogic is trading at a lower price-to-earnings ratio than Zalando, indicating that it is currently the more affordable of the two stocks.
Summary
Zalando beats ContextLogic on 5 of the 9 factors compared between the two stocks.
About ContextLogic
ContextLogic Inc. operates as a mobile ecommerce company in Europe, North America, South America, and internationally. The company operates Wish, an ecommerce platform that connects consumers to merchants. It also provides marketplace and logistics services to merchants. ContextLogic Inc. was incorporated in 2010 and is headquartered in San Francisco, California.
About Zalando
Zalando SE operates an online platform for fashion and lifestyle products. The company operates through Fashion Store and Offprice segments. It provides shoes, apparel, accessories, and beauty products with free delivery and returns, as well as various payment options. The company also sells its products through Lounge by Zalando; and brick-and-mortar outlet stores. It operates in Germany, Austria, Switzerland, Belgium, Croatia, the Czech Republic, Denmark, Estonia, Finland, Hungary, France, Ireland, Italy, Latvia, Lithuania, Luxembourg, the Netherlands, Norway, Poland, Romania, Slovakia, Slovenia, Spain, Sweden, and the United Kingdom. The company was founded in 2008 and is headquartered in Berlin, Germany.
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