Etsy vs Pinterest Which Is More Favorable?

Etsy and Pinterest are two popular e-commerce platforms that have seen significant success in recent years. While both companies cater to creative individuals and artisans, their business models and revenue streams differ. Etsy is an online marketplace for handmade and vintage goods, while Pinterest is a social media platform focused on visual discovery and inspiration. Investors looking to capitalize on the growing trend of online shopping and social commerce may be interested in comparing the growth potential and financial performance of Etsy and Pinterest stocks.

Etsy or Pinterest?

When comparing Etsy and Pinterest, 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 Pinterest.

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 Pinterest 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, Pinterest 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 26.24 and Pinterest's P/E ratio at 96.36. 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 Pinterest's P/B ratio is 7.19.

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 Pinterest's is 2.17%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Etsy's ROE at -43.01% and Pinterest's ROE at 7.00%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $57.96 for Etsy and $30.44 for Pinterest. Over the past year, Etsy's prices ranged from $47.10 to $89.58, with a yearly change of 90.19%. Pinterest's prices fluctuated between $27.00 and $45.19, with a yearly change of 67.35%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.