Critical Review: QuoteMedia (OTCMKTS:QMCI) and eBay (NASDAQ:EBAY)

QuoteMedia (OTCMKTS:QMCI) and eBay (NASDAQ:EBAY) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, earnings, valuation, institutional ownership, analyst recommendations, dividends and risk.

Analyst Ratings

This is a breakdown of recent ratings for QuoteMedia and eBay, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
QuoteMedia	0	0	0	0	N/A
eBay	1	15	7	0	2.26

eBay has a consensus price target of $56.90, suggesting a potential downside of 11.58%. Given eBay’s higher probable upside, analysts plainly believe eBay is more favorable than QuoteMedia.

Risk & Volatility

QuoteMedia has a beta of 0.53, suggesting that its share price is 47% less volatile than the S&P 500. Comparatively, eBay has a beta of 1.32, suggesting that its share price is 32% more volatile than the S&P 500.

Profitability

This table compares QuoteMedia and eBay’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
QuoteMedia	-0.55%	-23.75%	-1.41%
eBay	26.41%	29.69%	8.46%

Institutional & Insider Ownership

87.5% of eBay shares are owned by institutional investors. 47.1% of QuoteMedia shares are owned by company insiders. Comparatively, 0.4% of eBay shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares QuoteMedia and eBay”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
QuoteMedia	$18.91 million	0.95	$370,000.00	N/A	N/A
eBay	$10.11 billion	3.11	$2.77 billion	$5.02	12.82

eBay has higher revenue and earnings than QuoteMedia.

Summary

eBay beats QuoteMedia on 10 of the 11 factors compared between the two stocks.

About QuoteMedia

QuoteMedia, Inc. provides financial data, market research information, analytics, news feeds, and financial software solutions to online brokerages, banks, clearing firms, financial service companies, media portals, and public corporations worldwide. It collects, aggregates, and delivers delayed and real-time financial data content through the Internet. The company also offers market information and services, including streaming stock market data feeds, research and analysis information, content applications, portfolio management systems, software products, corporate investor relations provisioning, news services, mobile apps, and custom development. In addition, its data feeds coverage includes equities, options, futures, commodities, currencies, mutual funds, ETFs, and indices. Further, the company provides financial data delivery application products and components comprising quote modules, charts, market movers, news, watch lists, tickers, market summaries, option chains, filings, investor relations solutions, fundamentals, stock and fund screeners, and others; and QMod, a web delivery system for delivering market data content to Web platforms. Additionally, it offers portfolio managements systems, including Quotestream Desktop, We, and Mobile, a Web-delivered, embedded application providing real-time, tick-by-tick, streaming market quotes and research information; Quotestream Professional that offers low-latency tick-by-tick data, customizable screens, advanced charting, comprehensive technical analysis, news, and research data for financial services professionals; Web Portfolio Manager, which provides immediate web access to detailed quote data, market and company news, charting, depth/level II, filings, historical data, snap quotes, and others; and Quotestream Connect that delivers real time data feeds to individual users to power third party applications. The company was incorporated in 1992 and is headquartered in Fountain Hills, Arizona.

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.