Head to Head Comparison: eBay (NASDAQ:EBAY) and ITEX (OTCMKTS:ITEX)

ITEX (OTCMKTS:ITEX) and eBay (NASDAQ:EBAY) are both business services companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, profitability, valuation, dividends, earnings, institutional ownership and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ITEX	N/A	N/A	N/A
eBay	25.97%	29.11%	8.24%

Dividends

ITEX pays an annual dividend of $0.20 per share and has a dividend yield of 4.1%. eBay pays an annual dividend of $1.08 per share and has a dividend yield of 2.0%. eBay pays out 21.5% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of current ratings for ITEX and eBay, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ITEX	0	0	0	0	N/A
eBay	1	11	7	0	2.32

eBay has a consensus target price of $53.94, suggesting a potential downside of 0.43%. Given eBay’s higher possible upside, analysts plainly believe eBay is more favorable than ITEX.

Risk & Volatility

ITEX has a beta of 0.28, suggesting that its share price is 72% less volatile than the S&P 500. Comparatively, eBay has a beta of 1.31, suggesting that its share price is 31% more volatile than the S&P 500.

Insider & Institutional Ownership

87.5% of eBay shares are held by institutional investors. 32.0% of ITEX shares are held by insiders. Comparatively, 0.4% of eBay shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares ITEX and eBay’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ITEX	N/A	N/A	N/A	N/A	N/A
eBay	$10.11 billion	2.69	$2.77 billion	$5.02	10.79

eBay has higher revenue and earnings than ITEX.

Summary

eBay beats ITEX on 8 of the 11 factors compared between the two stocks.

About ITEX

ITEX Corporation operates a marketplace in which products and services are exchanged by marketplace members without exchanging cash in the United States. The company's marketplace provides a forum for members to purchase from and sell their products and services to other members using ITEX dollars instead of United States dollars. It also administers the marketplace, as well as provides record-keeping and payment transaction processing services. In addition, the company services its member businesses through its independent licensed brokers and franchise network. ITEX Corporation was founded in 1982 and is headquartered in Bellevue, Washington.

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.