Wayfair (NYSE:W) versus Ocado Group (OTCMKTS:OCDDY) Critical Review
by Tristan Rich · The Markets DailyOcado Group (OTCMKTS:OCDDY – Get Free Report) and Wayfair (NYSE:W – Get Free Report) are both retail/wholesale companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, risk, earnings, dividends, analyst recommendations, institutional ownership and profitability.
Profitability
This table compares Ocado Group and Wayfair’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Ocado Group | N/A | N/A | N/A |
| Wayfair | -2.41% | -2.20% | 1.92% |
Analyst Ratings
This is a summary of recent ratings and price targets for Ocado Group and Wayfair, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ocado Group | 0 | 0 | 0 | 0 | 0.00 |
| Wayfair | 1 | 10 | 18 | 1 | 2.63 |
Wayfair has a consensus price target of $99.68, suggesting a potential upside of 5.94%. Given Wayfair’s stronger consensus rating and higher probable upside, analysts plainly believe Wayfair is more favorable than Ocado Group.
Insider & Institutional Ownership
89.7% of Wayfair shares are held by institutional investors. 18.4% 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 is poised for long-term growth.
Valuation and Earnings
This table compares Ocado Group and Wayfair”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Ocado Group | $1.81 billion | 1.14 | $531.74 million | N/A | N/A |
| Wayfair | $12.46 billion | 1.00 | -$313.00 million | ($2.34) | -40.21 |
Ocado Group has higher earnings, but lower revenue than Wayfair.
Risk & Volatility
Ocado Group has a beta of 2.26, meaning that its share price is 126% more volatile than the S&P 500. Comparatively, Wayfair has a beta of 2.96, meaning that its share price is 196% more volatile than the S&P 500.
Summary
Wayfair beats Ocado Group on 9 of the 13 factors compared between the two stocks.
About Ocado Group
Ocado Group plc, together with its subsidiaries, operates as an online grocery retailer in the United Kingdom and internationally. The company operates in three segments: Technology Solutions, Ocado Logistics, and Ocado Retail. It offers online grocery and general merchandise; and customer fulfillment centers and logistics services. The company is involved in the software and robotics platform business that provides the Ocado Smart Platform as a managed service, as well as offers Ocado Intelligent Automation that sells its technology to warehouse environments in non-grocery markets. In addition, the company provides online retail and automated storage and retrieval solutions for general merchandise to corporations. Ocado Group plc was founded in 2000 and is headquartered in Hatfield, the United Kingdom.
About Wayfair
Wayfair Inc. provides e-commerce business in the United States and internationally. The company offers approximately thirty million products for the home sector. It offers online selections of furniture, décor, housewares, and home improvement products through its sites consisting of Wayfair, Joss & Main, AllModern, Birch Lane, Perigold, and Wayfair Professional. The company offers its products under the Three Posts and Mercury Row brand name. The company was founded in 2002 and is headquartered in Boston, Massachusetts.