Comparing Rakuten Group (OTCMKTS:RKUNF) & ContextLogic (NASDAQ:WISH)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ContextLogic	-131.05%	-115.96%	-62.36%
Rakuten Group	N/A	N/A	N/A

Institutional and Insider Ownership

46.0% of ContextLogic shares are owned by institutional investors. Comparatively, 18.9% of Rakuten Group shares are owned by institutional investors. 8.2% of ContextLogic shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares ContextLogic and Rakuten Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ContextLogic	$287.00 million	0.49	-$317.00 million	($11.98)	-0.48
Rakuten Group	N/A	N/A	N/A	$27.96	0.21

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

Analyst Ratings

This is a summary of current recommendations and price targets for ContextLogic and Rakuten Group, as provided by MarketBeat.com.

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

Summary

Rakuten Group beats ContextLogic on 5 of the 8 factors compared between the two stocks.

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.

About Rakuten Group

Rakuten Group, Inc. provides services in e-commerce, fintech, digital content, and communications to various users in Japan and internationally. The company operates through three segments: Internet Services, FinTech, and Mobile. The Internet Services segment provides range of e-commerce sites, such as Rakuten Ichiba, an Internet shopping mall, online cash-back sites, travel booking sites, portal sites, and digital content sites. It also offers messaging services and sells advertising; and manages professional sport teams. The FinTech segment offers financial services over the internet related to banking and securities, credit cards, life insurance, general insurance, electronic payment business, crypto asset (virtual currency) spot transaction, etc. The Mobile segment provides communication services and technology, electricity supply, and digital content site services. The company was formerly known as Rakuten, Inc. and changed its name to Rakuten Group, Inc. in April 2021. Rakuten Group, Inc. was incorporated in 1997 and is headquartered in Setagaya, Japan.