BigCommerce vs Etsy Which Is a Better Investment?

BigCommerce and Etsy are two companies that operate in the e-commerce industry, but they cater to different markets. BigCommerce is a software platform that helps businesses create and manage online stores, while Etsy is an online marketplace for handmade and vintage goods. Both companies have seen significant growth in their stock prices in recent years, but each offers unique investment opportunities. In this comparison, we will analyze the strengths and weaknesses of investing in BigCommerce versus Etsy stocks.

BigCommerce or Etsy?

When comparing BigCommerce 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 BigCommerce 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. BigCommerce has a dividend yield of -%, while Etsy has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. BigCommerce reports a 5-year dividend growth of 0.00% year and a payout ratio of -2.75%. 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 BigCommerce P/E ratio at -19.71 and Etsy's P/E ratio at 26.24. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. BigCommerce P/B ratio is 18.91 while Etsy's P/B ratio is -10.79.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, BigCommerce has seen a 5-year revenue growth of 1.55%, while Etsy's is 3.72%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with BigCommerce's ROE at -103.45% and Etsy's ROE at -43.01%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $6.94 for BigCommerce and $57.96 for Etsy. Over the past year, BigCommerce's prices ranged from $5.12 to $10.19, with a yearly change of 98.83%. 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.