Apple vs Etsy Which Should You Buy?

Apple and Etsy are two popular company stocks that appeal to different types of investors. Apple is a technology giant known for its innovative products and strong financial performance, making it a staple in many investment portfolios. On the other hand, Etsy is an online marketplace for handmade and vintage goods, offering a unique investment opportunity in the e-commerce sector. Both stocks have their own strengths and weaknesses, creating an interesting comparison for investors looking to diversify their portfolios.

Apple or Etsy?

When comparing Apple and Etsy, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Apple and Etsy.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Apple has a dividend yield of 0.44%, while Etsy has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Apple reports a 5-year dividend growth of -19.56% year and a payout ratio of 16.25%. On the other hand, Etsy reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Apple P/E ratio at 36.44 and Etsy's P/E ratio at 23.77. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Apple P/B ratio is 59.97 while Etsy's P/B ratio is -9.77.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Apple has seen a 5-year revenue growth of 0.82%, while Etsy's is 3.72%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Apple's ROE at 137.87% and Etsy's ROE at -43.01%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $222.76 for Apple and $52.91 for Etsy. Over the past year, Apple's prices ranged from $164.08 to $237.49, with a yearly change of 44.74%. Etsy's prices fluctuated between $47.10 and $89.58, with a yearly change of 90.19%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.