Etsy vs BigCommerce Which Is More Promising?

Etsy and BigCommerce are two popular e-commerce companies that have been making waves in the stock market. Etsy, founded in 2005, is known for its unique and handmade products, while BigCommerce, established in 2009, offers a platform for online stores. Both companies have experienced significant growth in recent years, attracting investors looking to capitalize on the booming e-commerce industry. This comparison will delve into the key differences between Etsy and BigCommerce stocks, helping investors make informed decisions about their portfolios.

Etsy or BigCommerce?

When comparing Etsy and BigCommerce, 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 BigCommerce.

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 BigCommerce 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, BigCommerce reports a 5-year dividend growth of 0.00% year and a payout ratio of -2.75%.

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 BigCommerce's P/E ratio at -18.14. 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 BigCommerce's P/B ratio is 17.41.

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 BigCommerce's is 1.55%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Etsy's ROE at -43.01% and BigCommerce's ROE at -103.45%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $53.44 for Etsy and $6.19 for BigCommerce. Over the past year, Etsy's prices ranged from $47.10 to $89.58, with a yearly change of 90.19%. BigCommerce's prices fluctuated between $5.12 and $10.19, with a yearly change of 98.83%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.