Etsy vs Alibaba Which Is More Profitable?

Etsy and Alibaba are two of the biggest e-commerce companies in the world, each with their own unique strengths and weaknesses. Etsy is a popular online marketplace known for its focus on handmade and vintage goods, while Alibaba is a global giant with a diverse range of products and services. Investors looking to buy stocks in these companies must consider factors such as market volatility, growth potential, and competitive positioning. In this comparison, we will analyze the financial performance and future prospects of Etsy versus Alibaba stocks.

Etsy or Alibaba?

When comparing Etsy and Alibaba, 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 Etsy and Alibaba.

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. Etsy has a dividend yield of -%, while Alibaba has a dividend yield of 2.97%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Etsy reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Alibaba reports a 5-year dividend growth of 0.00% year and a payout ratio of 54.40%.

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 Etsy P/E ratio at 26.24 and Alibaba's P/E ratio at 18.46. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Etsy P/B ratio is -10.79 while Alibaba's P/B ratio is 1.67.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Etsy has seen a 5-year revenue growth of 3.72%, while Alibaba's is 2.38%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Etsy's ROE at -43.01% and Alibaba's ROE at 8.88%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $58.51 for Etsy and $88.00 for Alibaba. Over the past year, Etsy's prices ranged from $47.10 to $89.58, with a yearly change of 90.19%. Alibaba's prices fluctuated between $66.63 and $117.82, with a yearly change of 76.83%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.