Coupang vs Etsy Which Is More Promising?

Coupang and Etsy are two leading e-commerce companies with significant differences in their business models and target markets. Coupang, often referred to as the "Amazon of South Korea," is a fast-growing online retailer that offers a wide range of products and services, while Etsy is a global marketplace that focuses on handmade and vintage items. Investors seeking exposure to the e-commerce sector may consider both stocks, but should carefully evaluate their respective growth prospects, financial performance, and competitive positioning.

Coupang or Etsy?

When comparing Coupang 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 Coupang 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. Coupang 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. Coupang reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. 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 Coupang P/E ratio at 41.61 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. Coupang P/B ratio is 10.24 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, Coupang has seen a 5-year revenue growth of 4.40%, while Etsy's is 3.72%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Coupang's ROE at 25.43% and Etsy's ROE at -43.01%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $23.66 for Coupang and $57.96 for Etsy. Over the past year, Coupang's prices ranged from $13.51 to $26.91, with a yearly change of 99.19%. 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.