Critical Contrast: Liberty Interactive QVC Group (LINTA) and Wayfair (W)

Wayfair (NYSE: W) and Liberty Interactive QVC Group (NASDAQ:LINTA) are both mid-cap retail/wholesale companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, valuation, analyst recommendations, dividends, risk, institutional ownership and earnings.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Wayfair and Liberty Interactive QVC Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Wayfair 0 7 15 0 2.68
Liberty Interactive QVC Group 0 0 0 0 N/A

Wayfair currently has a consensus target price of $76.01, indicating a potential upside of 23.45%. Given Wayfair’s higher possible upside, research analysts plainly believe Wayfair is more favorable than Liberty Interactive QVC Group.

Institutional and Insider Ownership

66.3% of Wayfair shares are held by institutional investors. 56.9% of Wayfair shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Volatility & Risk

Wayfair has a beta of 1, indicating that its share price has a similar volatility profile to the S&P 500.Comparatively, Liberty Interactive QVC Group has a beta of 1.32, indicating that its share price is 32% more volatile than the S&P 500.

Profitability

This table compares Wayfair and Liberty Interactive QVC Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Wayfair -5.06% -658.45% -25.38%
Liberty Interactive QVC Group 5.12% 9.05% 3.44%

Earnings & Valuation

This table compares Wayfair and Liberty Interactive QVC Group’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Wayfair $3.38 billion 1.59 -$194.37 million ($2.50) -24.63
Liberty Interactive QVC Group N/A N/A N/A $1.11 21.54

Liberty Interactive QVC Group has higher revenue, but lower earnings than Wayfair. Wayfair is trading at a lower price-to-earnings ratio than Liberty Interactive QVC Group, indicating that it is currently the more affordable of the two stocks.

About Wayfair

Wayfair Inc. (Wayfair) offers browsing, merchandising and product discovery for a range of products from various suppliers. The Company operates through two segments: U.S. and International. The U.S. segment consists of amounts earned through product sales through the Company’s five sites in the United States and through sites operated by third parties in the United States. The International segment consists of amounts earned through product sales through its international sites. It has an online selection of furniture, decor, decorative accents, housewares, seasonal decor and other home goods. As of December 31, 2016, it had offered five sites, including Websites, mobile-optimized Websites and mobile applications: Wayfair, Joss & Main, AllModern, DwellStudio and Birch Lane. Wayfair is an online destination for all things home. Birch Lane offers a collection of furnishings and home decor. Its sites feature certain products under its house brands, such as Three Posts and Mercury Row.

About Liberty Interactive QVC Group

Liberty Interactive Corporation owns interests in subsidiaries and other companies, which are primarily engaged in the video and online commerce industries. Through its subsidiaries and affiliates, the Company operates in North America, Europe and Asia. Its principal businesses and assets include its subsidiaries QVC, Inc. (QVC), zulily, llc (zulily) and and Evite, Inc. (Evite). The Company’s segments include QVC, zulily, and Corporate and other. Evite is an online invitation and social event planning service on the Web. As of December 31, 2016, QVC marketed and sold a range of consumer products primarily through live merchandise-focused televised shopping programs distributed to approximately 362 million households each day and through its Websites, including QVC.com, and other interactive media, such as mobile applications. Zulily’s merchandise includes women’s, children’s and men’s apparel, children’s merchandise and other products, such as kitchen accessories and home decor.

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