Capcom vs Etsy Which Is a Better Investment?

Capcom and Etsy are two companies with vastly different business models and target markets. Capcom, a Japanese video game developer known for iconic franchises like Street Fighter and Resident Evil, thrives in the entertainment industry. On the other hand, Etsy is an American e-commerce platform focused on handmade and vintage goods. Despite their differences, investors may draw parallels between these companies and consider their performances in the market. Let's delve into the potential comparison of Capcom vs Etsy stocks.

Capcom or Etsy?

When comparing Capcom 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 Capcom 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. Capcom has a dividend yield of 1.32%, while Etsy has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Capcom reports a 5-year dividend growth of 0.47% year and a payout ratio of 42.44%. 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 Capcom P/E ratio at 20.49 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. Capcom P/B ratio is 3.63 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, Capcom has seen a 5-year revenue growth of -0.31%, while Etsy's is 3.72%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Capcom's ROE at 18.52% and Etsy's ROE at -43.01%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $11.19 for Capcom and $57.96 for Etsy. Over the past year, Capcom's prices ranged from $7.73 to $12.20, with a yearly change of 57.83%. 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.