Etsy vs Sea Which Is More Profitable?

Etsy and Sea Limited are two prominent e-commerce companies operating in different markets but with similar business models. Etsy is a global online marketplace known for its handmade, vintage, and unique products, while Sea Limited is a digital entertainment and e-commerce platform primarily serving the Southeast Asian market. Both companies have experienced significant growth in recent years, but their approaches and strategies vary greatly. This comparison will delve into the key differences between Etsy and Sea Limited in terms of market reach, product offerings, and financial performance.

Etsy or Sea?

When comparing Etsy and Sea, 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 Sea.

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 Sea 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, Sea 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 Sea's P/E ratio at 680.97. 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 Sea's P/B ratio is 8.68.

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 Sea's is 8.44%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Etsy's ROE at -43.01% and Sea's ROE at 1.44%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $57.96 for Etsy and $114.16 for Sea. Over the past year, Etsy's prices ranged from $47.10 to $89.58, with a yearly change of 90.19%. Sea's prices fluctuated between $34.35 and $119.47, with a yearly change of 247.80%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.