Analyzing Accolade (NASDAQ:ACCD) & eBay (NASDAQ:EBAY)

Accolade (NASDAQ:ACCD) 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 valuation, analyst recommendations, profitability, earnings, dividends, risk and institutional ownership.

Insider and Institutional Ownership

85.0% of Accolade shares are owned by institutional investors. Comparatively, 87.5% of eBay shares are owned by institutional investors. 8.2% of Accolade shares are owned by insiders. Comparatively, 0.4% of eBay shares are owned by 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Accolade	-40.36%	-20.74%	-11.33%
eBay	19.68%	30.97%	8.78%

Analyst Ratings

This is a summary of current recommendations and price targets for Accolade and eBay, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Accolade	0	12	1	0	2.08
eBay	2	16	9	0	2.26

Accolade presently has a consensus target price of $7.46, suggesting a potential upside of 8.06%. eBay has a consensus target price of $63.13, suggesting a potential downside of 9.69%. Given Accolade’s higher possible upside, equities research analysts clearly believe Accolade is more favorable than eBay.

Risk & Volatility

Accolade has a beta of 2.2, indicating that its share price is 120% more volatile than the S&P 500. Comparatively, eBay has a beta of 1.35, indicating that its share price is 35% more volatile than the S&P 500.

Valuation and Earnings

This table compares Accolade and eBay”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Accolade	$414.29 million	1.36	-$99.81 million	($2.25)	-3.07
eBay	$10.11 billion	3.31	$2.77 billion	$3.98	17.56

eBay has higher revenue and earnings than Accolade. Accolade is trading at a lower price-to-earnings ratio than eBay, indicating that it is currently the more affordable of the two stocks.

Summary

eBay beats Accolade on 11 of the 14 factors compared between the two stocks.

About Accolade

Accolade, Inc., together with its subsidiaries, engages in the development and provision of personalized and technology-enabled solutions that help people to understand, navigate, and utilize the healthcare system and their workplace benefits in the United States. The company offers a platform with cloud-based intelligent technology and multimodal support from a team of advocates and clinicians, including registered nurses, physician medical directors, pharmacists, behavioral health specialists, women’s health specialists, case management specialists, expert medical opinion providers, and primary care physicians. It also provides medical opinion services to commercial customers; and navigation, care, and advocacy solutions. In addition, the company offers medical consultations that connect patients to qualified condition-specific specialists for adult and pediatric care; and primary care and mental health support solutions. It serves employers who provide employees and their families a single place to turn for their health, healthcare, and benefits needs. The company was incorporated in 2007 and is headquartered in Seattle, 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.