Wayfair (NYSE:W) & Linkage Global (NASDAQ:LGCB) Critical Analysis

Linkage Global (NASDAQ:LGCB) and Wayfair (NYSE:W) are both retail/wholesale companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, earnings, valuation, risk, profitability, analyst recommendations and dividends.

Risk & Volatility

Linkage Global has a beta of -1.74, suggesting that its share price is 274% less volatile than the S&P 500. Comparatively, Wayfair has a beta of 2.93, suggesting that its share price is 193% more volatile than the S&P 500.

Valuation & Earnings

This table compares Linkage Global and Wayfair”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Linkage Global	$10.29 million	0.41	-$440,000.00	N/A	N/A
Wayfair	$11.85 billion	0.42	-$738.00 million	($2.85)	-13.67

Linkage Global has higher earnings, but lower revenue than Wayfair.

Insider & Institutional Ownership

0.3% of Linkage Global shares are owned by institutional investors. Comparatively, 89.7% of Wayfair shares are owned by institutional investors. 21.9% of Wayfair shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for Linkage Global and Wayfair, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Linkage Global	0	0	0	0	0.00
Wayfair	0	12	11	1	2.54

Wayfair has a consensus target price of $44.57, suggesting a potential upside of 14.36%. Given Wayfair’s stronger consensus rating and higher probable upside, analysts clearly believe Wayfair is more favorable than Linkage Global.

Profitability

This table compares Linkage Global and Wayfair’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Linkage Global	N/A	N/A	N/A
Wayfair	-4.15%	N/A	-11.45%

Summary

Wayfair beats Linkage Global on 9 of the 12 factors compared between the two stocks.

About Linkage Global

Linkage Global Inc, through its subsidiaries, operates as a cross-border e-commerce integrated services provider in Japan, Hong Kong, and Mainland China. It provides cross-border product sales; digital marketing services; and e-commerce operation training and software support services. Linkage Global Inc was founded in 2011 and is headquartered in Tokyo, Japan.

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.