Etsy vs Alphabet Which Should You Buy?

Etsy and Alphabet are two prominent companies in the tech sector, each offering unique opportunities for investors. Etsy is a popular e-commerce platform focused on handmade and vintage items, while Alphabet is the parent company of Google, known for its dominance in search engines and technology services. Investors may be drawn to Etsy's high growth potential in the e-commerce market, while Alphabet's diverse revenue streams and strong brand recognition may offer stability and long-term growth prospects. Both stocks present distinct investment opportunities for investors looking to diversify their portfolios in the tech sector.

Etsy or Alphabet?

When comparing Etsy and Alphabet, 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 Alphabet.

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 Alphabet has a dividend yield of 0.23%. 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, Alphabet reports a 5-year dividend growth of 0.00% year and a payout ratio of 5.22%.

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 25.49 and Alphabet's P/E ratio at 22.78. 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 -10.48 while Alphabet's P/B ratio is 6.84.

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 Alphabet's is 1.47%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Etsy's ROE at -43.01% and Alphabet's ROE at 31.66%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $57.14 for Etsy and $173.55 for Alphabet. Over the past year, Etsy's prices ranged from $47.10 to $89.58, with a yearly change of 90.19%. Alphabet's prices fluctuated between $131.06 and $193.31, with a yearly change of 47.50%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.