Etsy (NASDAQ:ETSY) & Stamps.com (NASDAQ:STMP) Critical Review
Etsy (NASDAQ:ETSY) and Stamps.com (NASDAQ:STMP) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.
Risk and Volatility
Etsy has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500. Comparatively, Stamps.com has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500.
This table compares Etsy and Stamps.com’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Etsy||$603.69 million||13.50||$77.49 million||$0.61||111.15|
|Stamps.com||$586.93 million||1.19||$168.64 million||$9.84||4.11|
Stamps.com has lower revenue, but higher earnings than Etsy. Stamps.com is trading at a lower price-to-earnings ratio than Etsy, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings and recommmendations for Etsy and Stamps.com, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Etsy currently has a consensus price target of $69.79, indicating a potential upside of 2.93%. Stamps.com has a consensus price target of $60.00, indicating a potential upside of 48.48%. Given Stamps.com’s higher probable upside, analysts clearly believe Stamps.com is more favorable than Etsy.
This table compares Etsy and Stamps.com’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider and Institutional Ownership
95.6% of Etsy shares are held by institutional investors. Comparatively, 96.7% of Stamps.com shares are held by institutional investors. 3.0% of Etsy shares are held by company insiders. Comparatively, 6.2% of Stamps.com shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Stamps.com beats Etsy on 9 of the 14 factors compared between the two stocks.
Etsy Company Profile
Etsy, Inc. operates Etsy.com, a commerce platform to make, sell, and buy goods online and offline primarily in the United States, United Kingdom, Canada, Australia, France, and Germany. It provides various seller services and tools that are designed to help entrepreneurs for starting, managing, and scaling their businesses. The company offers approximately 50 million items across approximately 50 retail categories to buyers. It also provides various seller services, including Etsy payments, a payment processing service; promoted listings, an on-site advertising service that allows sellers to pay for prominent placement of their listings in search results; shipping labels, which allows sellers in the United States and Canada to purchase discounted shipping labels; and pattern, a service that allows sellers to build custom Websites, as well as offers seller tools and education resources to manage the administrative side of their businesses. Etsy, Inc. was founded in 2005 and is headquartered in Brooklyn, New York.
Stamps.com Company Profile
Stamps.com Inc. provides Internet-based mailing and shipping solutions in the United States and Europe. The company offers mailing and shipping solutions to mail and ship various mail pieces and packages through the United States Postal Service (USPS) under the Stamps.com and Endicia brands. Its solutions support various USPS mail classes, including First Class Mail, Priority Mail, Priority Mail Express, Media Mail, Parcel Select, and others. The company's USPS mailing and shipping solutions enable users to print electronic postage directly onto envelopes, plain paper, or labels using personal computer, printer, and Internet connection. It also provides multi carrier shipping solutions under the MetaPack, ShipStation, ShipWorks, and ShippingEasy brands; mailing and shipping integration solutions comprising electronic postage for transactions to partners who manage the front-end process; branded insurance to insure mails or packages; and international postage solutions. In addition, the company offers customized postage solutions under the PhotoStamps and PictureItPostage brand names, which allow consumers to turn digital photos, designs, or images into USPS-approved postage; and sells NetStamps labels, shipping labels, other mailing labels, dedicated postage printers, scales, and other mailing and shipping-focused office supplies through its mailing and shipping supplies stores. It serves individuals, small businesses, home offices, medium-size businesses, large enterprises, e-commerce merchants, and warehouse shippers. The company was formerly known as StampMaster, Inc. and changed its name to Stamps.com Inc. in December 1998. Stamps.com Inc. was founded in 1996 and is headquartered in El Segundo, California.
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