In today’s dynamic specialty retail sector, eBay Inc. and Williams-Sonoma, Inc. stand out as prominent players with distinct yet overlapping market approaches. eBay excels as a global online marketplace connecting millions of buyers and sellers, while Williams-Sonoma focuses on premium home products through omni-channel retailing. This comparison explores their innovation strategies and market positioning to help you identify which company aligns best with your investment goals. Let’s discover which stock offers the most compelling opportunity.
Table of contents
Companies Overview
I will begin the comparison between eBay and Williams-Sonoma by providing an overview of these two companies and their main differences.
eBay Overview
eBay Inc. operates marketplace platforms connecting buyers and sellers globally through online, mobile, and offline channels. Founded in 1995 and headquartered in San Jose, California, eBay’s mission is to facilitate commerce by enabling users to list, buy, sell, and pay for items across various sectors. It holds a strong position in the specialty retail industry with a market cap of approximately 41B USD.
Williams-Sonoma Overview
Williams-Sonoma, Inc. is an omni-channel specialty retailer focused on home products, including cookware, furniture, and home decor across multiple brands. Established in 1956 and based in San Francisco, California, it markets products via e-commerce, catalogs, and a global network of 544 stores. The company has a market capitalization near 24.4B USD and emphasizes innovation through 3-D imaging and augmented reality in home furnishings.
Key similarities and differences
Both eBay and Williams-Sonoma operate in the specialty retail sector, targeting consumer cyclical markets with distinct approaches. eBay functions as a digital marketplace platform connecting diverse participants, whereas Williams-Sonoma is a traditional retailer with a strong physical store presence and branded product lines. The companies differ in scale, with eBay having fewer employees but a higher market cap, and Williams-Sonoma focusing on home-related goods compared to eBay’s broad product range.
Income Statement Comparison
The table below presents a side-by-side comparison of key income statement metrics for eBay Inc. and Williams-Sonoma, Inc. for their most recent fiscal year.
| Metric | eBay Inc. (EBAY) | Williams-Sonoma, Inc. (WSM) |
|---|---|---|
| Market Cap | 41.1B | 24.4B |
| Revenue | 10.3B | 7.7B |
| EBITDA | 2.86B | 1.66B |
| EBIT | 2.54B | 1.43B |
| Net Income | 1.98B | 1.13B |
| EPS | 3.98 | 8.91 |
| Fiscal Year | 2024 | 2024 |
Income Statement Interpretations
eBay Inc.
eBay’s revenue showed a favorable 15.62% growth over 2020-2024 but slowed to 1.69% in 2024. Net income declined sharply by 65.15% overall and dropped further in 2024, with net margin shrinking by nearly 70% over the period. Despite stable gross margins near 72%, recent EBIT and net margin contractions reveal pressure on profitability.
Williams-Sonoma, Inc.
Williams-Sonoma reported a 13.69% revenue increase over five years, with a slight 0.5% revenue dip in 2024. Gross profit and EBIT margins improved, with net income rising by 65.3% overall and 19.08% in 2024. Consistent operating expense control supported margin expansion, leading to favorable earnings per share growth of over 100% in the period.
Which one has the stronger fundamentals?
Williams-Sonoma’s fundamentals appear stronger, supported by broad margin improvements, sustained net income growth, and favorable EPS trends. Conversely, eBay faces challenges with declining net income and margins despite revenue gains. Williams-Sonoma’s consistent profitability and margin expansion offer a more favorable income statement profile for investors.
Financial Ratios Comparison
The table below presents a side-by-side comparison of key financial ratios for eBay Inc. and Williams-Sonoma, Inc. based on their most recent fiscal year data.
| Ratios | eBay Inc. (2024) | Williams-Sonoma, Inc. (2024) |
|---|---|---|
| ROE | 38.3% | 52.5% |
| ROIC | 13.4% | 29.9% |
| P/E | 15.6 | 23.7 |
| P/B | 6.0 | 12.5 |
| Current Ratio | 1.24 | 1.44 |
| Quick Ratio | 1.24 | 0.74 |
| D/E (Debt-to-Equity) | 1.52 | 0.63 |
| Debt-to-Assets | 40.6% | 25.4% |
| Interest Coverage | 8.95 | 0 (not available) |
| Asset Turnover | 0.53 | 1.45 |
| Fixed Asset Turnover | 6.08 | 3.49 |
| Payout ratio | 27.0% | 24.9% |
| Dividend yield | 1.73% | 1.05% |
Interpretation of the Ratios
eBay Inc.
eBay shows a solid financial profile with strong net margin (19.21%) and return on equity (38.29%), indicating efficient profitability and shareholder value creation. However, its price-to-book ratio of 5.96 and debt-to-equity of 1.52 are less favorable, suggesting valuation concerns and leverage risks. The company pays a dividend with a moderate yield of 1.73%, supported by stable coverage, but caution is warranted due to its leverage.
Williams-Sonoma, Inc.
Williams-Sonoma demonstrates robust returns, with a notably high return on equity of 52.52% and return on invested capital of 29.89%, reflecting strong capital efficiency. The current ratio and quick ratio indicate mixed liquidity, with the latter unfavorable at 0.74. It offers a dividend yield of 1.05%, backed by consistent earnings, though its higher price-to-book ratio of 12.45 and weighted average cost of capital at 10.8% raise some caution.
Which one has the best ratios?
Both companies present slightly favorable overall ratio profiles, but Williams-Sonoma edges ahead with a higher proportion of favorable metrics (50% vs. 42.86%) and stronger returns on capital. eBay benefits from better liquidity and interest coverage but faces more valuation and leverage concerns. The choice depends on weighing profitability against financial structure and valuation risks.
Strategic Positioning
This section compares the strategic positioning of eBay Inc. and Williams-Sonoma, Inc., focusing on market position, key segments, and exposure to technological disruption:
eBay Inc.
- Global online marketplace leader facing moderate competition in specialty retail.
- Key segments: Marketplaces and advertising revenues driving growth primarily through e-commerce platforms.
- Exposure to technological disruption through digital platform evolution and mobile app engagement.
Williams-Sonoma, Inc.
- Omni-channel specialty retailer focused on home products with physical and online presence.
- Key segments: Pottery Barn, Williams Sonoma, West Elm, and related home furnishing brands.
- Uses 3-D imaging and augmented reality for home furnishings, integrating technology in retail experience.
eBay Inc. vs Williams-Sonoma, Inc. Positioning
eBay operates a diversified global online marketplace with broad user engagement, while Williams-Sonoma concentrates on specialty home retail with omni-channel sales and multiple lifestyle brands. eBay’s platform-based model contrasts with Williams-Sonoma’s product and brand diversification across physical and digital channels.
Which has the best competitive advantage?
Both companies show very favorable moats with growing ROIC above WACC, indicating durable competitive advantages. Williams-Sonoma exhibits a stronger ROIC trend and higher excess returns, suggesting a comparatively more robust competitive advantage.
Stock Comparison
The stock price movements of eBay Inc. and Williams-Sonoma, Inc. over the past 12 months reveal significant bullish trends with varying degrees of deceleration and recent divergent short-term performances.
Trend Analysis
eBay Inc. recorded a 109.23% price increase over the past year, indicating a bullish trend with deceleration. The stock ranged between 43.45 and 100.7, showing moderate volatility with a 14.19 std deviation.
Williams-Sonoma, Inc. showed a 76.06% gain over the same period, also bullish but decelerating. It exhibited higher volatility with a 25.4 std deviation and price fluctuations from 113.05 to 214.6.
Comparing both stocks, eBay delivered the highest market performance with a larger overall price increase, despite its recent slight downward trend versus Williams-Sonoma’s short-term gains.
Target Prices
Analysts present a clear consensus on target prices for eBay Inc. and Williams-Sonoma, Inc., reflecting moderate upside potential.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| eBay Inc. | 115 | 65 | 96.69 |
| Williams-Sonoma, Inc. | 230 | 175 | 205.75 |
The consensus target prices for both companies suggest potential price appreciation compared to their current prices of $90.91 for eBay and $199.04 for Williams-Sonoma, indicating positive market expectations within a controlled risk framework.
Analyst Opinions Comparison
This section compares the analysts’ ratings and financial scores for eBay Inc. and Williams-Sonoma, Inc.:
Rating Comparison
eBay Inc. Rating
- Rating: B+, considered Very Favorable by analysts.
- Discounted Cash Flow Score: 3, indicating Moderate value.
- ROE Score: 5, rated Very Favorable for profit efficiency.
- ROA Score: 5, rated Very Favorable for asset utilization.
- Debt To Equity Score: 1, Very Unfavorable, indicates high financial risk.
- Overall Score: 3, seen as Moderate overall financial standing.
Williams-Sonoma, Inc. Rating
- Rating: B+, considered Very Favorable by analysts.
- Discounted Cash Flow Score: 3, indicating Moderate value.
- ROE Score: 5, rated Very Favorable for profit efficiency.
- ROA Score: 5, rated Very Favorable for asset utilization.
- Debt To Equity Score: 2, Moderate, indicating lower financial risk than eBay.
- Overall Score: 3, seen as Moderate overall financial standing.
Which one is the best rated?
Both companies share identical ratings and most financial scores, including ROE and ROA, rated very favorably. However, Williams-Sonoma has a better Debt To Equity Score, suggesting a stronger balance sheet and lower financial risk compared to eBay.
Scores Comparison
Here is a comparison of the Altman Z-Score and Piotroski Score for eBay Inc. and Williams-Sonoma, Inc.:
EBAY Scores
- Altman Z-Score: 5.84, indicating a safe zone status with low bankruptcy risk.
- Piotroski Score: 6, reflecting average financial strength and value potential.
WSM Scores
- Altman Z-Score: 7.04, indicating a safe zone status with lower bankruptcy risk.
- Piotroski Score: 7, reflecting strong financial strength and good investment potential.
Which company has the best scores?
Williams-Sonoma has a higher Altman Z-Score and Piotroski Score compared to eBay, indicating stronger financial health and lower bankruptcy risk based on the provided data.
Grades Comparison
The following presents a comparison of recent grades assigned to eBay Inc. and Williams-Sonoma, Inc.:
eBay Inc. Grades
This table summarizes the latest grades from reputable financial firms for eBay Inc.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Wells Fargo | Maintain | Equal Weight | 2026-01-08 |
| Truist Securities | Maintain | Hold | 2025-11-03 |
| Piper Sandler | Maintain | Overweight | 2025-10-30 |
| Barclays | Maintain | Overweight | 2025-10-30 |
| Wells Fargo | Maintain | Equal Weight | 2025-10-30 |
| Benchmark | Maintain | Buy | 2025-10-30 |
| UBS | Maintain | Neutral | 2025-10-30 |
| Needham | Maintain | Buy | 2025-10-30 |
| Cantor Fitzgerald | Maintain | Neutral | 2025-10-30 |
| Evercore ISI Group | Maintain | In Line | 2025-10-30 |
Overall, eBay’s grades display a balanced outlook with a mix of Buy, Hold, and Neutral ratings, reflecting moderate confidence from analysts.
Williams-Sonoma, Inc. Grades
This table presents the latest grades by established financial institutions for Williams-Sonoma, Inc.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Evercore ISI Group | Maintain | In Line | 2025-12-23 |
| RBC Capital | Maintain | Outperform | 2025-11-21 |
| Telsey Advisory Group | Maintain | Outperform | 2025-11-20 |
| UBS | Maintain | Neutral | 2025-11-20 |
| TD Cowen | Maintain | Buy | 2025-11-20 |
| Citigroup | Maintain | Neutral | 2025-11-20 |
| Telsey Advisory Group | Maintain | Outperform | 2025-11-19 |
| Telsey Advisory Group | Maintain | Outperform | 2025-11-14 |
| Wells Fargo | Maintain | Equal Weight | 2025-11-11 |
| Evercore ISI Group | Maintain | In Line | 2025-10-14 |
Williams-Sonoma’s grades reveal a generally positive trend with multiple Outperform ratings, indicating stronger analyst confidence.
Which company has the best grades?
Williams-Sonoma has received relatively higher grades, including several Outperform ratings compared to eBay’s more mixed Buy and Hold consensus. This suggests a stronger analyst conviction in Williams-Sonoma’s prospects, which may influence investor sentiment toward greater growth expectations.
Strengths and Weaknesses
Below is a comparison of key strengths and weaknesses for eBay Inc. and Williams-Sonoma, Inc. based on the most recent data from 2024.
| Criterion | eBay Inc. | Williams-Sonoma, Inc. |
|---|---|---|
| Diversification | Focused mainly on marketplaces and advertising revenues, less diversified | Multiple strong segments including Pottery Barn, West Elm, and Williams Sonoma, providing diversified revenue sources |
| Profitability | Net margin 19.21%, ROIC 13.39%, slightly favorable overall ratios | Net margin 14.59%, ROIC 29.89%, higher profitability but some unfavorable liquidity ratios |
| Innovation | Moderate innovation focused on marketplace efficiency and advertising | Innovation in product design and e-commerce experience, strong brand appeal |
| Global presence | Strong online global marketplace presence | Primarily US-focused retail and e-commerce, limited global reach |
| Market Share | Leading in online marketplace segment globally | Significant in home furnishing retail space, strong niche market share |
Key takeaways: eBay demonstrates a durable competitive advantage with strong profitability and growing ROIC, driven by its global marketplace platform. Williams-Sonoma shows higher profitability margins and diversified revenue but faces some liquidity challenges and more concentrated geographic exposure. Both offer value creation but with different risk and growth profiles.
Risk Analysis
Below is a comparative risk table for eBay Inc. (EBAY) and Williams-Sonoma, Inc. (WSM) based on the most recent 2024 data and market conditions in 2026:
| Metric | eBay Inc. (EBAY) | Williams-Sonoma, Inc. (WSM) |
|---|---|---|
| Market Risk | Beta 1.35 indicates moderate volatility; exposure to e-commerce competition | Higher Beta 1.58 implies greater price volatility; retail cyclical exposure |
| Debt level | Debt-to-Equity 1.52 (unfavorable), Debt/Assets 40.6% (neutral) | Debt-to-Equity 0.63 (neutral), Debt/Assets 25.4% (favorable), lower leverage |
| Regulatory Risk | Moderate; e-commerce regulations and data privacy laws apply | Moderate; retail regulations and international trade policies relevant |
| Operational Risk | Platform reliability and cybersecurity risks; supply chain agility moderate | Supply chain complexity with global retail stores; inventory management critical |
| Environmental Risk | Moderate; growing pressure on sustainable practices in tech platforms | Higher; products and packaging sustainability increasingly scrutinized |
| Geopolitical Risk | Exposure via international marketplace operations | Global retail footprint exposes to currency and geopolitical uncertainties |
In summary, Williams-Sonoma exhibits slightly higher market volatility but benefits from lower leverage and stronger operational scores. eBay’s higher debt level and data privacy regulatory demands pose notable risks. Both companies remain in a “safe zone” financially, but investors should watch eBay’s debt management and WSM’s supply chain resilience closely.
Which Stock to Choose?
eBay Inc. shows mixed income evolution with a slight revenue growth of 1.69% in 2024 but declining net income and margins over the period. Financial ratios are slightly favorable with strong ROE (38.29%) and ROIC (13.39%) but weaker debt metrics. Its rating is very favorable (B+), supported by a very favorable moat and safe-zone Altman Z-Score.
Williams-Sonoma, Inc. exhibits favorable income growth with a 13.69% revenue increase and strong net income expansion of 65.3%. It presents a slightly more favorable financial ratio profile, including higher ROE (52.52%) and ROIC (29.89%), lower debt, and a strong rating (B+) supported by a very favorable moat and safe-zone Altman Z-Score.
Investors prioritizing durable competitive advantages and profitability might find Williams-Sonoma’s stronger income growth and financial ratios more appealing, while those emphasizing stability with a slightly lower debt burden could interpret eBay as a solid option; both firms hold very favorable ratings and moats suggesting potential value creation.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of eBay Inc. and Williams-Sonoma, Inc. to enhance your investment decisions:
