SEA (NYSE:SE) and Stamps.com (NASDAQ:STMP) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, dividends, institutional ownership, analyst recommendations and earnings.
Profitability
This table compares SEA and Stamps.com's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| SEA | -38.59% | -144.79% | -22.93% |
| Stamps.com | 21.40% | 21.50% | 16.08% |
Analyst Ratings
This is a summary of recent ratings and price targets for SEA and Stamps.com, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| SEA | 0 | 2 | 8 | 0 | 2.80 |
| Stamps.com | 0 | 1 | 1 | 0 | 2.50 |
SEA presently has a consensus target price of $204.9167, suggesting a potential downside of 18.82%. Stamps.com has a consensus target price of $260.00, suggesting a potential upside of 26.40%. Given Stamps.com's higher possible upside, analysts clearly believe Stamps.com is more favorable than SEA.
Institutional & Insider Ownership
74.4% of SEA shares are owned by institutional investors. Comparatively, 88.2% of Stamps.com shares are owned by institutional investors. 0.2% of SEA shares are owned by insiders. Comparatively, 9.6% of Stamps.com shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Risk & Volatility
SEA has a beta of 1.36, suggesting that its stock price is 36% more volatile than the S&P 500. Comparatively, Stamps.com has a beta of 0.4, suggesting that its stock price is 60% less volatile than the S&P 500.
Earnings & Valuation
This table compares SEA and Stamps.com's gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| SEA | $2.18 billion | 37.95 | $-1,462,800,000.00 | ($2.27) | -111.20 |
| Stamps.com | $571.85 million | 6.61 | $59.23 million | $3.33 | 61.77 |
Stamps.com has lower revenue, but higher earnings than SEA. SEA is trading at a lower price-to-earnings ratio than Stamps.com, indicating that it is currently the more affordable of the two stocks.
Summary
Stamps.com beats SEA on 9 of the 14 factors compared between the two stocks.
