Etsy vs Kering Which Is a Better Investment?

Etsy and Kering are two companies operating in different sectors of the retail industry. Etsy is an online marketplace focused on handmade and vintage goods, while Kering is a luxury goods conglomerate that owns brands such as Gucci and Yves Saint Laurent. Both companies have seen significant growth in recent years, but their stock performances have differed. Etsy has experienced strong growth due to increased demand for unique and artisanal products, while Kering has benefited from the booming luxury goods market. Investors may consider factors such as market trends, financial performance, and brand reputation when comparing these two stocks.

Etsy or Kering?

When comparing Etsy and Kering, 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 Kering.

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 Kering has a dividend yield of 7.88%. 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, Kering reports a 5-year dividend growth of 16.17% year and a payout ratio of 64.15%.

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 Kering's P/E ratio at 10.26. 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 Kering's P/B ratio is 1.84.

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 Kering's is 0.47%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Etsy's ROE at -43.01% and Kering's ROE at 17.77%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $53.44 for Etsy and $238.64 for Kering. Over the past year, Etsy's prices ranged from $47.10 to $89.58, with a yearly change of 90.19%. Kering's prices fluctuated between $238.64 and $480.99, with a yearly change of 101.55%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.