Financial Analysis: PCM (PCMI) vs. Qurate Retail Inc Series A (QRTEA)

PCM (NASDAQ: PCMI) and Qurate Retail Inc Series A (NASDAQ:QRTEA) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, valuation, dividends, analyst recommendations and risk.

Profitability

This table compares PCM and Qurate Retail Inc Series A’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PCM 0.33% 14.21% 2.59%
Qurate Retail Inc Series A 11.15% 19.57% 7.14%

Institutional and Insider Ownership

55.3% of PCM shares are owned by institutional investors. Comparatively, 84.6% of Qurate Retail Inc Series A shares are owned by institutional investors. 26.8% of PCM shares are owned by company insiders. Comparatively, 0.0% of Qurate Retail Inc Series A shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for PCM and Qurate Retail Inc Series A, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PCM 0 0 2 0 3.00
Qurate Retail Inc Series A 1 0 7 0 2.75

PCM currently has a consensus price target of $20.00, suggesting a potential downside of 13.98%. Qurate Retail Inc Series A has a consensus price target of $30.93, suggesting a potential upside of 42.32%. Given Qurate Retail Inc Series A’s higher possible upside, analysts plainly believe Qurate Retail Inc Series A is more favorable than PCM.

Valuation & Earnings

This table compares PCM and Qurate Retail Inc Series A’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PCM $2.19 billion 0.13 $3.09 million $1.08 21.53
Qurate Retail Inc Series A $10.38 billion 0.98 $2.44 billion $3.25 6.69

Qurate Retail Inc Series A has higher revenue and earnings than PCM. Qurate Retail Inc Series A is trading at a lower price-to-earnings ratio than PCM, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

PCM has a beta of 0.83, meaning that its stock price is 17% less volatile than the S&P 500. Comparatively, Qurate Retail Inc Series A has a beta of 1.34, meaning that its stock price is 34% more volatile than the S&P 500.

Summary

Qurate Retail Inc Series A beats PCM on 11 of the 14 factors compared between the two stocks.

PCM Company Profile

PCM, Inc., through its subsidiaries, operates as a multi-vendor provider of technology products and solutions in the United States and the rest of Europe. The company operates through four segments: Commercial, Public Sector, Canada, and United Kingdom. It primarily sells device products, servers, storage products, network products, printers, and related accessories and devices. The company also provides managed services, cloud-based services, consulting, IT management and other IT services, and technical certifications and operational expertise in various practice areas; and selection, implementation, and IT solutions comprising security, virtualization, data services, unified communications, and infrastructure, as well as software asset management and software value-added reseller services. PCM, Inc. markets its products, services, and solutions to individuals; commercial businesses; state, local, and federal governments; and educational institutions through its sales force, e-commerce channels, and technology services teams, as well as cloud data centers, field services organizations, and online extranets. The company was formerly known as PC Mall, Inc. and changed its name to PCM, Inc. in December 2012. PCM, Inc. was founded in 1987 and is headquartered in El Segundo, California.

Qurate Retail Inc Series A Company Profile

Qurate Retail Group, Inc. markets and sells various consumer products primarily through live merchandise-focused televised shopping programs, Websites, and mobile applications. The company's Websites offers home, apparel, beauty, accessories, jewelry, and electronics products. It also operates as an online retailer of women's, children's, and men's apparel, and children's merchandise; and home, beauty, and personalized products, as well as retails its products through catalogs, and retail and outlet stores. In addition, the company markets its products under the QVC, HSN, zulily, Frontgate, Ballard Designs, Grandin Road, Garnet Hill, and Improvements brand names. Its programming distributed products to approximately 362 million households in the United States, Germany, Austria, Japan, the United Kingdom, the Republic of Ireland, Italy, and France. The company was formerly known as QVC Group and changed its name to Qurate Retail Group, Inc. in March 2018. Qurate Retail Group, Inc. is based in Englewood, Colorado. Qurate Retail Group, Inc. is a subsidiary of Liberty Interactive Corporation.

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