Etsy vs PayPal Which Is More Profitable?

Etsy, the global online marketplace for unique and handmade products, and PayPal, the digital payment giant, are two popular stocks in the e-commerce sector. While Etsy has seen significant growth in recent years due to its focus on connecting buyers with independent sellers, PayPal has established itself as a leader in online payment processing. Both companies have experienced fluctuations in their stock prices, and investors are faced with the decision of which stock to invest in based on their financial goals and market trends.

Etsy or PayPal?

When comparing Etsy and PayPal, 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 PayPal.

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 PayPal 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, PayPal 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 PayPal's P/E ratio at 19.93. 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 PayPal's P/B ratio is 4.37.

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 PayPal's is 1.07%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Etsy's ROE at -43.01% and PayPal's ROE at 21.46%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $53.44 for Etsy and $83.38 for PayPal. Over the past year, Etsy's prices ranged from $47.10 to $89.58, with a yearly change of 90.19%. PayPal's prices fluctuated between $53.98 and $87.47, with a yearly change of 62.04%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.