Etsy (NASDAQ:ETSY – Get Free Report) and QVC Group (NASDAQ:QVCGA – Get Free Report) are both retail/wholesale companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, analyst recommendations and risk.
Analyst Ratings
This is a summary of current ratings for Etsy and QVC Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Etsy | 3 | 19 | 7 | 1 | 2.20 |
| QVC Group | 1 | 0 | 0 | 0 | 1.00 |
Etsy presently has a consensus price target of $64.24, indicating a potential upside of 9.88%. Given Etsy’s stronger consensus rating and higher possible upside, equities analysts clearly believe Etsy is more favorable than QVC Group.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Etsy | $2.85 billion | 2.02 | $303.28 million | $1.42 | 41.17 |
| QVC Group | $9.50 billion | 0.01 | -$1.29 billion | ($460.35) | -0.02 |
Etsy has higher earnings, but lower revenue than QVC Group. QVC Group is trading at a lower price-to-earnings ratio than Etsy, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Etsy and QVC Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Etsy | 5.78% | -31.10% | 11.14% |
| QVC Group | -37.71% | N/A | -13.21% |
Institutional & Insider Ownership
99.5% of Etsy shares are held by institutional investors. Comparatively, 64.1% of QVC Group shares are held by institutional investors. 2.8% of Etsy shares are held by company insiders. Comparatively, 12.4% of QVC Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Risk & Volatility
Etsy has a beta of 1.87, suggesting that its share price is 87% more volatile than the S&P 500. Comparatively, QVC Group has a beta of 3.04, suggesting that its share price is 204% more volatile than the S&P 500.
Summary
Etsy beats QVC Group on 11 of the 15 factors compared between the two stocks.
About Etsy
Etsy, Inc., together with its subsidiaries, operates two-sided online marketplaces that connect buyers and sellers in the United States, the United Kingdom, Germany, Canada, Australia, and France. 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 the Etsy Purchase Protection program that is designed to help buyers; the Etsy Share and Save program for sellers to save on Etsy fees for sales that drive to their Etsy shop from their own channels. Additionally, it offers 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. 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 QVC Group
QVC Group, Inc. engages in the business of video and online commerce industries. It operates through the following segments: QxH, QVC International and CBI. The QxH segment markets and sells a wide variety of consumer products in the U.S., primarily by means of its televised shopping programs and via the Internet through their websites and mobile applications. The QVC International segment markets and sells a wide variety of consumer products in several foreign countries, primarily by means of its televised shopping programs and via the Internet through its international websites and mobile applications. The CBI segment consists of a portfolio of aspirational home and apparel brands in the U.S. that sell merchandise through brick-and-mortar retail locations as well as via the Internet through their websites. The company was founded on March 28, 1991 and is headquartered in Englewood, CO.
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