Etsy vs GoDaddy Which Performs Better?

Etsy and GoDaddy are two popular companies in the tech sector, each offering unique services to consumers. Etsy is an online marketplace for handmade, vintage, and unique goods, while GoDaddy provides web hosting and domain registration services. Both companies have seen significant growth in recent years, but their stocks have had different trajectories. Etsy's stock has consistently outperformed the market, while GoDaddy has seen more volatile fluctuations. Investors must weigh the strengths and weaknesses of each company before deciding where to put their money.

Etsy or GoDaddy?

When comparing Etsy and GoDaddy, 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 GoDaddy.

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 GoDaddy 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, GoDaddy reports a 5-year dividend growth of 0.00% year and a payout ratio of 1.50%.

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 GoDaddy's P/E ratio at 15.69. 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 GoDaddy's P/B ratio is 81.46.

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 GoDaddy's is 0.95%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Etsy's ROE at -43.01% and GoDaddy's ROE at 747.83%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $57.96 for Etsy and $206.19 for GoDaddy. Over the past year, Etsy's prices ranged from $47.10 to $89.58, with a yearly change of 90.19%. GoDaddy's prices fluctuated between $99.90 and $210.30, with a yearly change of 110.51%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.