Reviewing Etsy (NYSE:ETSY) and Coupang (NYSE:CPNG)

Etsy (NYSE:ETSY) and Coupang (NYSE:CPNG) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, earnings, profitability, institutional ownership, valuation and analyst recommendations.

Earnings and Valuation

This table compares Etsy and Coupang”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Etsy	$2.88 billion	2.69	$162.98 million	$1.79	45.74
Coupang	$34.53 billion	0.81	$208.00 million	($0.43)	-36.12

Coupang has higher revenue and earnings than Etsy. Coupang 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 Coupang’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Etsy	7.32%	-34.18%	15.29%
Coupang	-2.16%	-8.77%	-2.00%

Risk and Volatility

Etsy has a beta of 1.81, suggesting that its stock price is 81% more volatile than the S&P 500. Comparatively, Coupang has a beta of 1.15, suggesting that its stock price is 15% more volatile than the S&P 500.

Institutional and Insider Ownership

99.5% of Etsy shares are held by institutional investors. Comparatively, 83.7% of Coupang shares are held by institutional investors. 2.5% of Etsy shares are held by insiders. Comparatively, 12.8% of Coupang shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations and price targets for Etsy and Coupang, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Etsy	1	17	13	3	2.53
Coupang	2	4	6	0	2.33

Etsy currently has a consensus price target of $84.68, indicating a potential upside of 3.42%. Coupang has a consensus price target of $25.39, indicating a potential upside of 63.50%. Given Coupang’s higher probable upside, analysts plainly believe Coupang is more favorable than Etsy.

Summary

Etsy beats Coupang on 10 of the 15 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 Coupang

Coupang, Inc., together with its subsidiaries owns and operates retail business through its mobile applications and Internet websites primarily in South Korea. The company operates through Product Commerce and Developing Offerings segments. It sells various products and services in the categories of home goods and décor products, apparel, beauty products, fresh food and groceries, sporting goods, electronics, and everyday consumables, as well as travel, and restaurant order and delivery services. In addition, the company offers Rocket Fresh, which offers fresh groceries; Coupang Eats, a restaurant ordering and delivery services; and Coupang Play, an online content streaming services, as well as advertising products. It also performs operations and support services in the United States, South Korea, Taiwan, Singapore, China, Japan, and India. Coupang, Inc. was incorporated in 2010 and is headquartered in Seattle, Washington.