Wayfair vs Etsy Which Is More Attractive?

Wayfair and Etsy are two popular e-commerce companies that cater to different markets. Wayfair specializes in furniture and home goods, while Etsy is known for handmade and unique products from independent sellers. Both stocks have shown strong performance in recent years, with Wayfair expanding its market share and Etsy attracting a loyal customer base. Investors often compare the two companies when considering investment opportunities in the e-commerce sector. Let's take a closer look at how Wayfair and Etsy stocks stack up against each other.

Wayfair or Etsy?

When comparing Wayfair and Etsy, 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 Wayfair and Etsy.

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. Wayfair has a dividend yield of -%, while Etsy has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Wayfair reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Etsy 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 Wayfair P/E ratio at -12.50 and Etsy's P/E ratio at 26.14. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Wayfair P/B ratio is -2.46 while Etsy's P/B ratio is -10.75.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Wayfair has seen a 5-year revenue growth of 0.39%, while Etsy's is 3.72%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Wayfair's ROE at 19.52% and Etsy's ROE at -43.01%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $52.65 for Wayfair and $57.54 for Etsy. Over the past year, Wayfair's prices ranged from $37.35 to $76.17, with a yearly change of 103.95%. Etsy's prices fluctuated between $47.10 and $89.58, with a yearly change of 90.19%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.