eBay vs Etsy Which Should You Buy?

eBay and Etsy are two popular online marketplaces that connect buyers and sellers from around the world. eBay is a well-established platform with a variety of products ranging from electronics to collectibles, while Etsy focuses on handmade and unique goods. Both companies have experienced growth in their stock prices, but there are key differences in their business models and target markets. Investors should carefully consider these factors when deciding whether to invest in eBay or Etsy stocks.

eBay or Etsy?

When comparing eBay 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 eBay 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. eBay has a dividend yield of 1.69%, while Etsy has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. eBay reports a 5-year dividend growth of 0.00% year and a payout ratio of 26.44%. 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 eBay P/E ratio at 15.39 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. eBay P/B ratio is 5.74 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, eBay has seen a 5-year revenue growth of 0.74%, while Etsy's is 3.72%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with eBay's ROE at 34.22% and Etsy's ROE at -43.01%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $63.50 for eBay and $57.96 for Etsy. Over the past year, eBay's prices ranged from $40.16 to $67.80, with a yearly change of 68.82%. 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.