eBay is rated by TheStreet Ratings as a buy with a grade of A. The company’s strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity and reasonable valuation levels.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Internet Software & Services industry and the overall market, EBAY INC’s return on equity exceeds that of both the industry average and the S&P 500.
- Although EBAY’s debt-to-equity ratio of 0.23 is very low, it is currently higher than that of the industry average. To add to this, eBay has a quick ratio of 2.33, which demonstrates the ability of the company to cover short-term liquidity needs.
- eBay’s revenue growth trails the industry average of 44.3 per cent. Since the same quarter one year prior, revenues rose by 14.8 per cent. This growth in revenue appears to have trickled down to the company’s bottom line, improving the earnings per share.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Internet Software & Services industry. The net income increased by 21.7 per cent when compared to the same quarter one year prior, going from $490.50-million to $597.00-million.
eBay Inc. provides online platforms, services, and tools to help individuals and merchants in online and mobile commerce and payments in the United States and internationally.
View the full eBay Ratings Report.
Apple is rated by TheStreet Ratings as a buy with a grade of A. The company’s strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, robust revenue growth and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow.
- Apple has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favourable sign. Along with the favourable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.24, which illustrates the ability to avoid short-term cash problems.
- Despite its growing revenue, the company underperformed as compared with the industry average of 27.6 per cent. Since the same quarter one year prior, revenues rose by 27.2 per cent. Growth in the company’s revenue appears to have helped boost the earnings per share.
- The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Computers & Peripherals industry average. The net income increased by 24.1 per cent when compared to the same quarter one year prior, going from $6,623-million to $8,223-million.
- Apple has improved earnings per share by 23 per cent in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, Apple increased its bottom line by earning $44.16 versus $27.67 in the prior year. This year, the market expects an improvement in earnings ($49.37 versus $44.16).
Apple Inc., together with subsidiaries, designs, manufactures, and markets personal computers, mobile communication devices, and portable digital music and video players, as well as sells various related software, services, peripherals, and networking solutions.
View the full Apple Ratings Report.
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Editor’s Note: TheStreet ratings do not represent the views of TheStreet’s staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.