Etsy Intrinsic Value Calculation – Comparing ETSY and EBAY: Which E-Commerce Stock is the Right Choice?
June 29, 2023
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When investing in e-commerce stocks, it can be difficult to decide which company is the right choice. This article will use TipRanks’ comparison tool to compare the two e-commerce stocks, Etsy ($NASDAQ:ETSY) and eBay, to determine which is the better stock. Etsy is an online marketplace that allows users to buy and sell unique handmade goods, vintage items, and craft supplies. It also offers services such as shipping labels and payment processing, making it a one-stop shop for online sellers.
By comparing the two e-commerce stocks, investors can easily determine which company is the better stock. On the other hand, eBay has a lower market value and is more of a short-term investment option. Ultimately, the decision lies with the investor and what their investing goals are.
Market Price
On Friday, ETSY opened at $91.3 and closed at $88.9, down by 3.5% from previous closing price of 92.1. ETSY is a marketplace focused on handmade and vintage items and creative goods, while EBAY targets a much larger range of products. ETSY also has a much more limited customer base than EBAY, as it focuses solely on handmade and vintage items and creative goods. This makes ETSY more vulnerable to economic downturns than EBAY, which has a much larger customer base and product selection. When it comes to stock performance, EBAY has generally outperformed ETSY in the long run.
However, the two stocks have seen very different performance in recent months. While ETSY has seen a steady decline in its stock price over the past few weeks, EBAY has been experiencing a strong uptrend since May. Ultimately, when comparing ETSY and EBAY, it is important to consider all of the factors mentioned above and to make an educated decision based on one’s individual risk appetite and financial goals. In the short term, it appears that EBAY is the better choice for investors with a higher risk tolerance. In the long term, both stocks have the potential to be profitable investments, depending on market conditions. etsy&utm_title=Comparing_ETSY_and_EBAY_Which_E-Commerce_Stock_is_the_Right_Choice”>Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Etsy. etsy&utm_title=Comparing_ETSY_and_EBAY_Which_E-Commerce_Stock_is_the_Right_Choice”>More…
| Total Revenues | Net Income | Net Margin |
| 2.63k | -705.86 | -3.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Etsy. etsy&utm_title=Comparing_ETSY_and_EBAY_Which_E-Commerce_Stock_is_the_Right_Choice”>More…
| Operations | Investing | Financing |
| 679.7 | -55.97 | -592.75 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Etsy. etsy&utm_title=Comparing_ETSY_and_EBAY_Which_E-Commerce_Stock_is_the_Right_Choice”>More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.5k | 3.04k | -4.44 |
Key Ratios Snapshot
Some of the financial key ratios for Etsy are shown below. etsy&utm_title=Comparing_ETSY_and_EBAY_Which_E-Commerce_Stock_is_the_Right_Choice”>More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 44.2% | 66.4% | -24.9% |
| FCF Margin | ROE | ROA |
| 24.7% | 74.7% | -16.3% |
Analysis – Etsy Intrinsic Value Calculation
At GoodWhale, we have conducted a thorough analysis of ETSY’s fundamentals. Our proprietary Valuation Line estimates the intrinsic value of each of ETSY’s shares to be around $183.4. Currently, the stock is trading at only $88.9, which implies that it is severely undervalued by more than 51.5%. This presents an excellent buying opportunity for investors who are looking to add ETSY to their portfolio. etsy&utm_title=Comparing_ETSY_and_EBAY_Which_E-Commerce_Stock_is_the_Right_Choice”>More…
Peers
Etsy Inc is a leading ecommerce company that focuses on selling handmade and vintage items. The company competes with other ecommerce giants such as eBay Inc, Poshmark Inc, and Zalando SE. Etsy has a loyal customer base and a strong brand identity. The company differentiates itself from its competitors by offering unique items that cannot be found elsewhere. Etsy is a publicly traded company that was founded in 2005.
– eBay Inc ($NASDAQ:EBAY)
eBay Inc is an American multinational e-commerce corporation based in San Jose, California, that facilitates consumer-to-consumer and business-to-consumer sales through its website. eBay was founded by Pierre Omidyar in 1995, and became a notable success story of the dot-com bubble. Today, it is a multibillion-dollar business with operations in about 30 countries.
The company has a market cap of 21.15B as of 2022 and a Return on Equity of -37.67%. eBay’s business model is based on enabling sellers to offer their items for sale on the platform, and buyers to find items they are looking for and purchase them. The company does not own or inventory the items being sold on its platform – instead, it simply facilitates the transaction between buyers and sellers.
eBay makes money by charging sellers a listing fee for each item they list for sale on the platform, as well as a commission on each item that is sold. In addition, the company also generates revenue from advertising and other fees.
– Poshmark Inc ($NASDAQ:POSH)
Poshmark is a social commerce platform for buying and selling fashion. It has a community of over 50 million sellers and buyers. Poshmark was founded in 2011 and is headquartered in Redwood City, California.
Poshmark’s market cap is 1.4B as of 2022. The company has a Return on Equity of -9.05%. Poshmark is a social commerce platform for buying and selling fashion. It has a community of over 50 million sellers and buyers. Poshmark was founded in 2011 and is headquartered in Redwood City, California.
– Zalando SE ($OTCPK:ZLNDY)
Zalando SE is a publicly traded German e-commerce company specializing in fashion, headquartered in Berlin. Founded in 2008, Zalando SE went public in 2014. As of 2022, Zalando SE has a market cap of 5.9B and a Return on Equity of 4.78%.
Zalando SE offers a platform for fashion and lifestyle. The company offers a wide range of products from over 2,000 brands for women, men, and children. The company operates in 15 European countries.
Summary
Etsy is an online marketplace for handmade and vintage items, with a focus on creativity and unique products. Investing in Etsy is a viable option for those looking to diversify their stock portfolios. Analysts rate Etsy as a ‘Strong Buy’ due to its impressive growth potential. Factors such as increased demand for online shopping, user-friendly platform, and strong customer loyalty have driven its success.
Etsy has also increased focus on international markets and has seen strong growth in revenue from Europe, Asia, and Latin America. With its focus on creativity, user-friendliness, and customer loyalty, Etsy remains an attractive investing option for those wanting to diversify their portfolios.
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