Head-To-Head Review: Netshoes Cayman (NETS) versus LightInTheBox (LITB)

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

Insider and Institutional Ownership

0.6% of LightInTheBox shares are held by institutional investors. Comparatively, 61.5% of Netshoes Cayman shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for LightInTheBox and Netshoes Cayman, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LightInTheBox 0 0 0 0 N/A
Netshoes Cayman 0 1 3 0 2.75

Netshoes Cayman has a consensus price target of $21.88, suggesting a potential upside of 260.97%. Given Netshoes Cayman’s higher probable upside, analysts plainly believe Netshoes Cayman is more favorable than LightInTheBox.

Profitability

This table compares LightInTheBox and Netshoes Cayman’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
LightInTheBox -2.86% -7.57% -4.32%
Netshoes Cayman N/A N/A N/A

Earnings and Valuation

This table compares LightInTheBox and Netshoes Cayman’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
LightInTheBox $292.49 million 0.44 -$8.72 million ($0.13) -14.38
Netshoes Cayman $533.75 million 0.35 -$46.35 million N/A N/A

LightInTheBox has higher earnings, but lower revenue than Netshoes Cayman.

Summary

Netshoes Cayman beats LightInTheBox on 7 of the 9 factors compared between the two stocks.

About LightInTheBox

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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