Etsy vs Mercari Which Is More Profitable?

Etsy and Mercari are both popular online marketplaces where individuals can buy and sell a wide range of products, from handmade crafts to vintage items. While Etsy is known for its focus on unique, artisanal goods, Mercari caters to a broader audience with a variety of new and used items. Both companies have seen significant growth in recent years, but their stocks have performed differently. This comparison will explore the key factors driving the stock performance of Etsy and Mercari.

Etsy or Mercari?

When comparing Etsy and Mercari, 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 Mercari.

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 Mercari 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, Mercari 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 Mercari's P/E ratio at 23.10. 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 Mercari's P/B ratio is 4.02.

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 Mercari's is 2.46%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Etsy's ROE at -43.01% and Mercari's ROE at 19.25%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $53.44 for Etsy and $5.78 for Mercari. Over the past year, Etsy's prices ranged from $47.10 to $89.58, with a yearly change of 90.19%. Mercari's prices fluctuated between $5.49 and $11.46, with a yearly change of 108.74%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.