Critical Review: Points International (PCOM) & Etsy (ETSY)

Points International (NASDAQ:PCOM) and Etsy (NASDAQ:ETSY) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitability, dividends, institutional ownership, valuation, analyst recommendations and risk.

Earnings and Valuation

This table compares Points International and Etsy’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Points International $347.55 million 0.54 $3.38 million N/A N/A
Etsy $441.23 million 11.28 $81.80 million $0.38 109.34

Etsy has higher revenue and earnings than Points International.

Profitability

This table compares Points International and Etsy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Points International 1.60% 14.17% 5.12%
Etsy 17.52% 13.23% 6.81%

Insider & Institutional Ownership

44.6% of Points International shares are owned by institutional investors. Comparatively, 86.7% of Etsy shares are owned by institutional investors. 2.8% of Etsy shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

Points International has a beta of 1.32, suggesting that its stock price is 32% more volatile than the S&P 500. Comparatively, Etsy has a beta of 0.23, suggesting that its stock price is 77% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Points International and Etsy, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Points International 0 0 1 0 3.00
Etsy 1 4 6 0 2.45

Points International currently has a consensus target price of $19.00, suggesting a potential upside of 44.49%. Etsy has a consensus target price of $44.68, suggesting a potential upside of 7.54%. Given Points International’s stronger consensus rating and higher probable upside, analysts clearly believe Points International is more favorable than Etsy.

Summary

Etsy beats Points International on 9 of the 13 factors compared between the two stocks.

About Points International

Points International Ltd. provides e-commerce and technology services to loyalty program operators in the United States, Canada, Europe, and internationally. It operates through three segments: Loyalty Currency Retailing, Platform Partners, and Points Travel. The Loyalty Currency Retailing segment provides products and services designed to help loyalty program members unlock the value of their loyalty currency and accelerate the time to a reward. The Platform Partners segment offers various applications that are connected to and enabled by the functionality of the loyalty commerce platform (LCP); and provides loyalty programs, merchants, and other consumer service applications leverage the LCP to distribute loyalty currency, and loyalty commerce transactions through multiple channels, including loyalty program, co-branded, and third-party channels. The Points Travel segment provides online travel bookings, including Points Travel and PointsHound services. The company is headquartered in Toronto, Canada.

About Etsy

Etsy, Inc. operates Etsy.com, a commerce platform to make, sell, and buy goods online and offline primarily in the United States, United Kingdom, Canada, Australia, France, and Germany. It provides various seller services and tools that are designed to help entrepreneurs for starting, managing, and scaling their businesses. The company offers approximately 50 million items across approximately 50 retail categories to buyers. It also provides various seller services, including Etsy payments, a payment processing service; promoted listings, an on-site advertising service that allows sellers to pay for prominent placement of their listings in search results; shipping labels, which allows sellers in the United States and Canada to purchase discounted shipping labels; and pattern, a service that allows sellers to build custom Websites, as well as offers seller tools and education resources to manage the administrative side of their businesses. Etsy, Inc. was founded in 2005 and is headquartered in Brooklyn, New York.

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