Critical Contrast: Etsy (NYSE:ETSY) and Rich Sparkle (NASDAQ:ANPA)

Etsy (NYSE:ETSY) and Rich Sparkle (NASDAQ:ANPA) are both services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, institutional ownership, valuation, earnings and dividends.

Profitability

This table compares Etsy and Rich Sparkle’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Etsy	6.38%	-29.07%	11.65%
Rich Sparkle	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Etsy and Rich Sparkle, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Etsy	0	3	0	0	2.00
Rich Sparkle	1	0	0	0	1.00

Earnings & Valuation

This table compares Etsy and Rich Sparkle”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Etsy	$2.81 billion	1.87	$303.28 million	$1.42	37.41
Rich Sparkle	$5.83 million	63.84	N/A	N/A	N/A

Etsy has higher revenue and earnings than Rich Sparkle.

Insider & Institutional Ownership

99.5% of Etsy shares are held by institutional investors. 2.8% of Etsy shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Etsy beats Rich Sparkle on 6 of the 8 factors compared between the two stocks.

About Etsy

Etsy, Inc. operates two-sided online marketplaces that connect buyers and sellers primarily in the United States, the United Kingdom, Germany, Canada, Australia, France, and India. Its primary marketplace is Etsy.com that connects artisans and entrepreneurs with various consumers. The company also offers Reverb, a musical instrument marketplace; Depop, a fashion resale marketplace; and Elo7, a Brazil-based marketplace for handmade and unique items. In addition, it offers various seller services, including Etsy Payments, a payment processing service; Etsy Ads, an advertising platform; and Shipping Labels, which allows sellers in the United States, Canada, the United Kingdom, Australia, and India to purchase discounted shipping labels. Further, the company provides various seller tools, including Shop Manager dashboard, a centralized hub for Etsy sellers to track orders, manage inventory, view metrics and statistics, and have conversations with their customers; and Sell on Etsy, an application to enable enhanced onboarding and video uploading. Additionally, it offers Etsy seller analytics pages that provides insights regarding traffic acquisition for their shops; Targeted Offers, a sales and promotions tool, and social media tool; and accounting and bookkeeping services. The company also provides educational resources comprising blog posts, video tutorials, Etsy Seller Handbook, Etsy.com online forums, and insights; Etsy Teams, a platform to build personal relationships with other Etsy sellers; and a Star Seller program. As of December 31, 2021, it connected a total of 7.5 million active sellers to 96.3 million active buyers; and had 120 million items for sale. The company was formerly known as Indieco, Inc changed its name to Etsy, Inc. in June 2006. Etsy, Inc. was founded in 2005 and is headquartered in Brooklyn, New York.

About Rich Sparkle

Rich Sparkle Holdings Limited is a financial printing and corporate services provider which specializes in designing and printing quality financial print materials principally in Hong Kong. Its service portfolio covers a myriad of deliverables, mainly including listing documents, financial reports, fund documents, circulars and announcements. Rich Sparkle Holdings Limited is based in Hong Kong.