Zalando (OTCMKTS:ZLDSF) vs. ContextLogic (NASDAQ:WISH) Financial Review

Zalando (OTCMKTS:ZLDSF) and ContextLogic (NASDAQ:WISH) are both consumer cyclical companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, analyst recommendations, valuation and dividends.

Earnings and Valuation

This table compares Zalando and ContextLogic’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zalando	N/A	N/A	N/A	$0.05	574.30
ContextLogic	$287.00 million	0.49	-$317.00 million	($13.38)	-0.43

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

Profitability

This table compares Zalando and ContextLogic’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Zalando	N/A	N/A	N/A
ContextLogic	-113.62%	-102.51%	-57.85%

Institutional & Insider Ownership

46.1% of ContextLogic shares are held by institutional investors. 8.2% of ContextLogic shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Zalando and ContextLogic, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zalando	0	0	0	0	N/A
ContextLogic	0	2	0	0	2.00

ContextLogic has a consensus price target of $9.00, indicating a potential upside of 54.64%. Given ContextLogic’s higher probable upside, analysts plainly believe ContextLogic is more favorable than Zalando.

Summary

Zalando beats ContextLogic on 5 of the 9 factors compared between the two stocks.

About Zalando

Zalando SE operates an online platform for fashion and lifestyle products. The company operates through Fashion Store and Offprice segments. It provides shoes, apparel, accessories, and beauty products with free delivery and returns, as well as various payment options. The company also sells its products through Lounge by Zalando; and brick-and-mortar outlet stores. It operates in Germany, Austria, Switzerland, Belgium, Croatia, the Czech Republic, Denmark, Estonia, Finland, Hungary, France, Ireland, Italy, Latvia, Lithuania, Luxembourg, the Netherlands, Norway, Poland, Romania, Slovakia, Slovenia, Spain, Sweden, and the United Kingdom. The company was founded in 2008 and is headquartered in Berlin, Germany.

About ContextLogic

ContextLogic Inc. operates as a mobile ecommerce company in Europe, North America, South America, and internationally. The company operates Wish, an ecommerce platform that connects consumers to merchants. It also provides marketplace and logistics services to merchants. ContextLogic Inc. was incorporated in 2010 and is headquartered in San Francisco, California.