Reviewing Netshoes (CAYMAN) (NASDAQ:NETS) and LightInTheBox Holding Co. (LITB)

LightInTheBox Holding Co. (NYSE: LITB) and Netshoes (CAYMAN) (NASDAQ:NETS) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, risk, institutional ownership, profitability, analyst recommendations and dividends.

Profitability

This table compares LightInTheBox Holding Co. and Netshoes (CAYMAN)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
LightInTheBox Holding Co. -3.01% -9.62% -5.61%
Netshoes (CAYMAN) -4.57% N/A N/A

Institutional and Insider Ownership

0.6% of LightInTheBox Holding Co. shares are held by institutional investors. 62.2% of LightInTheBox Holding Co. shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares LightInTheBox Holding Co. and Netshoes (CAYMAN)’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
LightInTheBox Holding Co. $297.89 million 0.65 -$8.31 million ($0.13) -21.77
Netshoes (CAYMAN) $571.63 million 0.54 -$3.50 million N/A N/A

Netshoes (CAYMAN) has higher revenue and earnings than LightInTheBox Holding Co..

Analyst Ratings

This is a summary of current ratings for LightInTheBox Holding Co. and Netshoes (CAYMAN), as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LightInTheBox Holding Co. 0 0 0 0 N/A
Netshoes (CAYMAN) 0 1 3 0 2.75

Netshoes (CAYMAN) has a consensus target price of $21.88, indicating a potential upside of 49.22%. Given Netshoes (CAYMAN)’s higher possible upside, analysts clearly believe Netshoes (CAYMAN) is more favorable than LightInTheBox Holding Co..

Summary

Netshoes (CAYMAN) beats LightInTheBox Holding Co. on 6 of the 10 factors compared between the two stocks.

About LightInTheBox Holding Co.

LightInTheBox Holding Co., Ltd. (LightInTheBox) is an online retail company that delivers products directly to consumers around the world. The Company offers a range of products through www.lightinthebox.com, www.miniinthebox.com and its other Websites, as well as mobile applications, which are available in approximately 30 languages. It has over 687,800 product listings. The Company also offers a range of other products in its other general merchandise product category. Its major markets are Europe and North America. The Company’s product offerings include apparel and other general merchandise. Its apparel category includes customized, special occasion apparel and fast fashion. Its other general merchandise category includes small accessories and gadgets, home and garden, electronics and communication devices and other products. The Company has additional Websites for specific products and geographic regions, including www.ouku.com for products targeting its Chinese customer base.

About Netshoes (CAYMAN)

Netshoes (Cayman) Limited is a sports and lifestyle online retailer in Latin America. The Company focuses on offering an online consumer platform in Latin America. The Company operates through two segments: Brazil and International. The Company operates in Brazil, Argentina, and Mexico. The Brazil segment consists of retail sales of consumer products from all of its verticals (which includes sales of sporting goods and related garments, as well as fashion and beauty goods) carried out through its sites Netshoes.com.br and Zattini.com.br and third-party sites that it manages, as well as its business to business offline operation. The International segment consists of retail sales of consumer products (mainly sporting goods and related garments) from its sites Netshoes.com.ar and Netshoes.com.mx in Argentina and Mexico.

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