Reviewing Savers Value Village (NYSE:SVV) & Etsy (NYSE:ETSY)

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

Valuation and Earnings

This table compares Etsy and Savers Value Village”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Etsy	$3.01 billion	2.40	$162.98 million	$8.47	9.91
Savers Value Village	$1.68 billion	0.93	$22.64 million	$0.40	25.36

Etsy has higher revenue and earnings than Savers Value Village. Etsy is trading at a lower price-to-earnings ratio than Savers Value Village, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Etsy has a beta of 1.75, indicating that its share price is 75% more volatile than the S&P 500. Comparatively, Savers Value Village has a beta of 1.22, indicating that its share price is 22% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Etsy and Savers Value Village, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Etsy	1	16	15	1	2.48
Savers Value Village	1	4	4	0	2.33

Etsy currently has a consensus target price of $94.07, indicating a potential upside of 12.11%. Savers Value Village has a consensus target price of $13.29, indicating a potential upside of 30.96%. Given Savers Value Village’s higher probable upside, analysts clearly believe Savers Value Village is more favorable than Etsy.

Insider and Institutional Ownership

99.5% of Etsy shares are owned by institutional investors. Comparatively, 98.8% of Savers Value Village shares are owned by institutional investors. 2.5% of Etsy shares are owned by company insiders. Comparatively, 3.5% of Savers Value Village shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Etsy and Savers Value Village’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Etsy	34.36%	-43.65%	16.92%
Savers Value Village	1.42%	14.58%	3.12%

Summary

Etsy beats Savers Value Village on 11 of the 15 factors compared between the two stocks.

About Etsy

Etsy, Inc. operates an online marketplace that connects buyers with independent sellers offering distinctive and creative goods. Its platform features products such as handmade items, vintage goods, craft supplies, clothing, jewelry, home décor and art. Founded in 2005 in Brooklyn, New York, Etsy has grown into a global marketplace serving buyers and sellers in numerous countries. The company’s platform provides sellers with tools to list and promote products, communicate with customers and manage orders, while giving shoppers ways to discover items from small businesses and individual creators.

About Savers Value Village

Savers Value Village Inc. operates a for-profit thrift store business, selling secondhand clothing, accessories, household goods, books and other merchandise. Its stores operate under several banners, including Savers, Value Village, Village des Valeurs, Unique and 2nd Ave. The company sources much of its merchandise through relationships with nonprofit organizations. It purchases donated goods from these partners, then sorts, processes and sells items through its retail stores, helping extend the useful life of donated products while providing revenue to nonprofit partners.