Etsy vs Amazon.com Which Is More Reliable?

Etsy and Amazon.com are two leading e-commerce platforms that have seen significant growth in recent years. While Amazon.com is a global powerhouse with a diverse range of products and services, Etsy specializes in unique, handmade, and vintage items. Investors considering these stocks should weigh factors such as revenue growth, market share, and competitive positioning. Both companies have experienced strong performance, but Etsy may appeal to investors looking for a niche market and a focus on artisanal goods.

Etsy or Amazon.com?

When comparing Etsy and Amazon.com, 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 Amazon.com.

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 Amazon.com has a dividend yield of -%. 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, Amazon.com 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 Etsy P/E ratio at 24.02 and Amazon.com's P/E ratio at 43.56. 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 -9.88 while Amazon.com's P/B ratio is 8.38.

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 Amazon.com's is 1.33%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Etsy's ROE at -43.01% and Amazon.com's ROE at 21.82%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $53.44 for Etsy and $205.59 for Amazon.com. Over the past year, Etsy's prices ranged from $47.10 to $89.58, with a yearly change of 90.19%. Amazon.com's prices fluctuated between $139.52 and $212.25, with a yearly change of 52.13%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.